Jitta has an example of investing in Jitta Top 5 at the start of the year and adjusting the port at the end of every year. Have you ever test-run to find out the result of always holding Jitta Top 5 (i.e. sell every stock that drops out of the Top 5 and buy new ones)? Will the result be much different? (if not, it probably won’t worth the commission)
Jitta haven’t tested that scenario because we think that:
- According to good investment principle, we should not have to bother with portfolio adjustment often. Also, in short-term, stock prices can easily fluctuate without anything to do with business performance. Even if it gives higher return, it is still not a good practice.
- The reason we tested Jitta Ranking’s result is to show that Jitta Score and Jitta Line can be successfully used in investment. Therefore, just making higher return than the index with the least portfolio adjustment (only once a year in this case) is ok with us.
We also did additional tests of buying Jitta Top 5, 10, 30 at the end of any month (no need to wait till year end) and hold them for 12 month before making an adjustment to the portfolio. It was found that, in the long run, the returns were higher than the index during the same period of time, as well.