Extract of the article, title "How to win at a winning game" by Teh Hooi Ling
Because of this emotional tug of war between greed and fear, many investors effectively manage to lose at a winning game.
So how exactly do we ensure that we WIN at this WINNING GAME?
(1) First, understand that when you invest in a diversified basket of stocks, you are INVESTING in a SLICE of the ECONOMY.
As long as we need to buy and sell things - there is no question about this here because we can't possibly produce all the things we need ourselves - then there will always be a value to productive companies.
(2) Second, DON'T EXIT the market when everyone else is rushing for the exit. Then, you will not get a fair value for the businesses that you own.
(3) Third, all the more you should BUY when you see BUSINESSES going on sale at a CHEAP PRICE.
The Moral of the Story: Don't say no chance to buy Kep Corp last time hor.
ReplyDeleteLook at the chart again.
Hi cw8888, how did you manage to get hold of your emotions to withstand the turbulent rides till now & more good years to go?
ReplyDeleteRead? Articles on Portfolio Management
DeleteLearn to manage at portfolio level.
Feel free to fire more questions after reading
Read more? 3Ms
Read more? Pillow Strategy
Extract of the article, title "How to win at a winning game" by Teh Hooi Ling
ReplyDeleteBecause of this emotional tug of war between greed and fear, many investors effectively manage to lose at a winning game.
So how exactly do we ensure that we WIN at this WINNING GAME?
(1) First, understand that when you invest in a diversified basket of stocks, you are INVESTING in a SLICE of the ECONOMY.
As long as we need to buy and sell things - there is no question about this here because we can't possibly produce all the things we need ourselves - then there will always be a value to productive companies.
(2) Second, DON'T EXIT the market when everyone else is rushing for the exit. Then, you will not get a fair value for the businesses that you own.
(3) Third, all the more you should BUY when you see BUSINESSES going on sale at a CHEAP PRICE.
http://www.thestar.com.my/Business/Business-News/2014/04/19/How-to-win-at-a-winning-game/