Read? Does Long Term Investing Always Work?
Look closely at Uncle8888's Blog head banner when he started blogging on ...
Sunday, 19 November 2006
Today, I take the first small step to start this journal, hope that it will be fun after seeing my children blogging. So I am disputing my youngest son that I am not that old fashioned.
Coming to 9 years of blogging soon!
Hope many silent readers have benefited from these years of reading.
How to make long term investing works for you?
Some will think our success in investing could be due to luck and market timing.
Yes! For short term investing of less than one market cycle, Uncle8888 fully agreed it could be due to luck and market timing; but to survive and continue to build up your wealth substantially from the stock market over decades of several market cycles of bulls and bears. It will require more than luck and market timing.
You may be lucky to get into the stock market at the best market timing; but you may not make more money from your luck and the best market timing.
Here is the real people and true story ..
One office auntie who is also another silent reader here has mentioned she bought DBS @ $7.51 in Mar 2009. It was 2 cents lower than Uncle8888's DBS @ $7.53 bought during SARS crisis in Apr 2003.
She only made small profit as she had sold her DBS way too early.
Her yield on investment cost for DBS @ $7.51 for holding SE Asian largest bank and strong brand is about 7.7%; but she has sold it for small profit.
How bad is 7.7% yield from a strong brand?
So what is the moral of the story?
The answer came from long long ago from this sifu ...
Read? Should our investing decisions be continuous struggle??? (3)
In the famous book entitled Reminiscences of a Stock Operator, Jessie Livermore said: “After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!
It is no trick at all to be right on the market. You always find lots of early bulls in bull markets and early bears in bear markets. I've known many men who were right at exactly the right time, and began buying or selling stocks when prices were at the very level, which should show the greatest profit.
And their experience invariably matched mine -- that is, they made no real money out of it.
I found it one of the hardest things to learn. But it is only after a stock operator has firmly grasped this that he can make big money. It is literally true that millions come easier to a trader after he knows how to trade than hundreds did in the days of his ignorance.”
Men who can both be right and sit tight are uncommon.
For those who still strongly believe in luck and market timing for long term investing; there is something to learn from this office auntie's story. No?
So how to make long term investing works for you?
Like it or not!
Long term investing is still a Game of Strategies.
What are your investing strategies?
What is your Game Plan?
What are Uncle8888's investing strategies and his Game Plan?
All can be found in this blog; but it will require your time, effort and energy to discover them.
Self-discovery is your true learning. It is the same way Uncle8888 has done it. No free lunch! No paying $X,XXX for course fee either!
Uncle8888 has learned it all free from the cyber world and NLB's book shelves.
Now, office auntie said she will be brave and strong in the next Bear market.
She has to prove it to herself!