Restructuring my Portfolios to Compensate Losses

At the end of last year 2009 I looked at my then portfolios with alarm as  not only was I losing on paper but the stocks were also ghostly dormant. I decided that I needed to do things quite drastically like taking out my ASN shares and my other savings and sold off my non-performing mutual funds and plowed them all into blue chips such as AXIATA, TM , SIME and MAXIS. And after nearly six months, thanks goodness the decision has paid off. The first two bluechips are doing really,really well.

Up till last week my paper losses on the plantation counters have been compensated and now I notice that for the last six weeks the plantation counters are slowly picking up indicating the commodity prices are on the upward trend. I cannot wait to sell some of them off in preparation of buying the shares in the two Petronas companies to be listed before the end of the year. I am now more concerned about getting constant good dividends rather than just relying on share price upside.

I have heard of loan restructuring which usually involves extending the period of payment and lowering the premium in which case the person is virtually stuck to the loaner, looks like a modern day slavery to me. What people say of a certain  situation is  "dig some holes  to cover others", that is when you take out a loan to pay another loan. Yes this is another  form of restructuring. What a life!

That is not a path to wealth creation as anyone can see. One should only restructure when one does not have to borrow money from others, though in my case I did borrow some at no interest from my better half whom I promptly repaid when my position became positive. But you cannot do that with others, let alone banks and worst still loan sharks!

Restructure your portfolios by all means but you must  have initially created a diversified portfolio to do that.