Saturday, 30 September 2017
Peter Lynch on His Secret to Superior Returns (2)
Read? Peter Lynch on His Secret to Superior Returns
How many retail really understand it?
How different from Peter's quote : So there's lots of stocks out there and all you need is a few of 'em. So that's been my philosophy. You have to let the big ones make up for your mistakes.
There are 30 STI Blue Chips on quarterly survival-ship reviews; you just have to let that few blue chips bought on SGX Great Sales and let these few big ones make up for your losses in those few blue-black chips.
You don't believe in Peter's quote?
You basically see a few stocks in your lifetime, that's all you need. I mean stocks are out there.
So there's lots of stocks out there and all you need is a few of 'em. So that's been my philosophy. You have to let the big ones make up for your mistakes.
Hmm ... surprising even one "Guru" conducting course doesn't really understand it too.
These wise words from Peter Lynch are too cheem!
Of course; we will make mistakes even Peter Lynch and Warren Buffet made mistakes; but they made much more money when they are right! That is the great different!
Read? When a Giant Gain Causes Pain (5)
Last night; one ex-vendor and ex-colleague jio Uncle8888 for dinner at the famous Clementi Satay. Of course; when they have dinner with Uncle8888; one of the thing to talk about will be on investing.
This ex-vendor is amazed at Uncle8888's decades of holding multi-bagger stocks and seriously he wanted to learn from him on how to hold multi-bagger stocks over the next market cycles.
His biggest regret of unable to hold winning stocks and this he must learn from Uncle8888 for the next bear market.
Uncle8888 bought DBS at $7.53; but he bought DBS at lower than Uncle8888 at $6+.
The biggest regret is that he sold DBS far too early; otherwise he will be the one telling better story of high yield of 9% multi-bagger blue chip - DBS.
DBS reached a max trailing dividend yield of 8+% during Mar 2009. Even if wait another 2 months for the trend to turn solidly up in May 2009, the div yield was about 6%.
ReplyDeleteIf held till today, div yield on cost still 6%, but share price doubled.
For bei kambings:
Moral of the story --- you can start buying in when trailing div yield goes beyond 6% Hahaha!!!
"Know what you own, and know why you own it." - Peter Lynch
ReplyDeleteThe bluechip high growth era is over. It has a good run for last 20 years as SG emerge from 3rd world to 1st world economy. For the last 5 years, SG GDP is at its peak.
ReplyDeleteWell, it make sense to buy bluechip for dividend play, growth is secondary.
Nevertheless, there will a time to buy at high dividend and undervalue; the best of both dividend and capital gain. The time will come, just don't know when. lol.