Wednesday, June 16, 2010

Long term investing

Here are some secrets and tips. Ignore the stock market. Don't watch TV. And more.


Anonymous said...

This is your stockmarket pilot again.

Previously, I posted to suggest moving into cash.

It's time now to move back into stocks.

This will be also be my last post on the stockmarket.

I just wanted to make the point that stockmarket prices cannot be predicted. But you can nonetheless time your entries and exits. Purpose being to provide critical thinking to the orthodox church of "buy & hold".

You'll have to decide whether market timing is better (at capital preservation) or "buy & hold".

Just remember that fund managers are paid according to the size of the assets under management. So asset managers are better paid if investors use a "buy & hold" strategy.

I employ buy & hold strategies myself. But only when the stockmarket conditions favour such a strategy.

Lastly, don't confuse a "buy & hold" strategy" with a "buy & pray" strategy.

The reason is purely arithmetic. A $10 stock drops to $5 is a 50% loss. Now the $5 stock has to go up by 100% to regain the $10 level. And this is just to break-even. Good Luck if this is your game plan!

And with this, I humbly conclude my public service to the investing public.

Anonymous said...

Huh? "stockmarket prices cannot be predicted"
"It's time now to move back into stocks."

Anonymous said...

Buy & Hold is good but make sure you buy some companies that are strong or else what you hold may close down and no longer around in the long term.

Anonymous said...

Reference June 18, 2010 4:20 AM.

Yes, you read my post correctly.

Stock prices cannot be predicted. But stockmarket entries and exits can be timed.

These are two entirely different and non-related subjects.

No, I don't have the patience to explain.

I have already pointed you in the correct direction to do your research if you really have the desire and passion.

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