Sunday, 27 December 2009

Er, What is value investing?

Lorna Tan wrote:

So you want to use the term. Just say...

"My resolution for the new year is to go into value investing. Hopefully it'll make me rich in the long run."

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Hmm...  Value investing makes one rich in the long run?

Whatever methods or strategies you use in investing, you can only become rich in the long run if you can to do one or both of these:
  • Have a portfolio of multi-bagger stocks and sell them at the next bull market peak and wait for next bear market bottom to load up again.
  • Compounding your portfolio of stocks at the fastest speed - the most money in the least time. Keep repeating it and pause at next bull market peak. Take a super long vacation and wait for the next bear market bottom to try again.
otherwise, it is very hard to become rich in the long run as bear comes after bull - yet another cycle of bull and bear.

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