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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Value Investing
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Saturday, 10 July 2010

I can't trade my dividend yield stocks?

YOU CAN’T HAVE YOUR CAKE AND EAT IT TOO

If I bought Stock A at 10% dividend yield; I will have to wait at least 10 years to reach 100% ROC.

What if I trade Stock A at 5% ROC per trade? Can I probably trade at least 20 times over 10 years to get at least 100% ROC? Do you think it is not possible?

If you are already spending lots of your quality time in analyzing the stock market and company fundamental, do you still think it is too difficult to find market opportunity for 20 profitable trades at 5% ROC per trade over 10 years?

2 comments:

  1. Hi,

    Just some thoughts.

    Would you be sure not to make other trades which might not be profitable over 10 years which would cannibalise your 20 profitable trades at 5% ROC per trade over 10 years?

    Then again, who is to say that the price of the stock in first option will stay constant from day 1 to the last day of the 10 year period?

    ReplyDelete
  2. I think Uncle means sell a long-term value share when market is too hot and buy again when it is under-priced. In between, collect the dividends. It it is a high quality share being dragged down or moved up by general market trends, it might be a good way to trade.

    ReplyDelete

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