As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

"For the things we have to learn before we can do them, we learn by doing them." - Aristotle

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Value Investing
Dividend/Income Investing
Technical Analysis and Charting
Stock Tips

Saturday, 25 July 2009

Why a Buy and Hold and don't even bother thinking of Selling Can be Wrong Strategy for You?

Who are they? They are the small boy Value Investors who practise Buffetology.

I am NOT saying that value investing is wrong and don't EVER get me wrong. Quite the contrary - if you are the likes of Warren Buffets (and those big institutions) with very, very long holding period where the base unit of time is a Decade (A decade is a period of ten years); buy and hold "forever" strategy makes a ton of sense.

These Warren Buffets have that kind of resources to know the inner workings of a company, and can meet the Management to understand their immediate and long term prospects, assess the real ability of the management team, cognitive of the goals of the board members, their future products in the pipeline, the expected acquisitions, the competitive landscape and many more .....

Honestly, tell me what kind of resources you have to really make near close true valuation of the company's business and its future earning prospects. You are likely at your disposal for detailed analysis of the company's business and its future earning prospects through quarterly and annual reports, and probably attending AGM and asking a few questions; and most of the time the Management is very careful not to mention any undisclosed public information; otherwise, they will have to rush out a press release.

Unfortunately, many so-called small boy value investors are just trying to outguess the Market by using a value analysis with very limited resources at hands to do a really tough job. I am NOT saying they cannot succeed, of course they can definitely do well as we have heard many proven success stories; but, I am saying it is really very, very tough and demand plenty of time and effort to do a good job. BTW, you still have your day job to take care. Cheers!

You may wish to read on ...

http://createwealth8888.blogspot.com/2009/04/fundamental-analysis-working-very.html
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