A following up to last month partial divestment of Nordic Group (refer here), with a total capital gain of 207.60%, this indicates that the initial capital I have vested in the stock is back to my pocket again. As such, the remaining holding is therefore considered mathematically impossible to lose money. That is risk-free (my definition of risk-free and not those government backed type of bond though).
Since 2015 when I adopted 孙子兵法 for my investment (single stock or portfolio of stocks), the aim is to make my investment 攻守自如 (凡战者，以正合，以奇胜). One of the criteria or requirement to achieve that is to have investment getting into the state of mathematically impossible to lose money. In another word, the remaining holding of Nordic Group I have still in hand can be considered as "free-hold" (as one of my friend suggested, like free-hold property). Strategically, I have achieved that target for Nordic Group (in a space of 3 years since I started vested into Nordic Group in 2014) despite fundamentally, still yet to reach my target.
Nordic Group is not the first stock I have achieved mathematically impossible to lose money status (since 2006 when I started to construct the current investment portfolio). The first to achieve that was First Reit (CPFIS) which I achieved in 2015 (refer here). Ironically, it was First Reit (CPFIS) unintended achievement that gave me the idea of what I would like to have in my 孙子兵法 investment. If things go smoothly, next quarter I will have First Reit (under investment portfolio) that will be the next to achieve that strategic objective. The 2 (going 3) stocks that achieved the objective however all having different methods (tactics) in doing so and that the best part of 孙子兵法 as it is flexible and not purely textbook style.
Having achieving said strategic objective for Nordic Group nevertheless give me a big psychological advantage and as the usual saying, half the battle is won when you have that psychological advantage. Should the stock price of Nordic Group continues to move up, I will be enjoying higher capital gain but should global stock markets (or even just stock price of Nordic Group) having a big crash (saying dropping 20% overnight), I'm not going to lose sleep over it either since I have basically nothing to lose from that investment. Even the worst case that Nordic Group gone belly up due to some reason, my investment zerolised but I still don't lose a single cent from it (given that I already get back my initial capital and not to forget a 19.95% dividend return as of now since 2014).
I will be removing my cut-loss price for Nordic Group that I have set in 2014 as it is becoming meaningless to have a cut-loss price given that it is already mathematically impossible to lose money.
Next, for the initial capital that I have gotten back, I could either wait for weakness in Nordic Group price to fall to another bargain hunting level (providing the fundamental still remain intact) and buy back or I could hunt for another stock to be placed in my stock incubator portfolio. The latter option is very attracting as given that with that same amount of capital I initially put in for Nordic Group, now I can own 2 stocks instead of just 1.
