http://www.bigfatpurse.com/2009/07/why-stocks/ Wed, 08 Feb 2012 04:44:12 +0000 hourly 1 http://wordpress.org/?v=3.2.1 http://www.bigfatpurse.com/2009/07/why-stocks/#comment-278 Alvin Tue, 28 Jul 2009 14:32:45 +0000 http://www.bigfatpurse.com/?p=1493#comment-278 Seems like you are a cycle investor. On buying specific companies, I believe it is possible (Buffett has shown it time and time again) but there must be diligence to scour through stacks of annual reports. Of course, if one is not confident, an index fund will be more ideal. Seems like you are a cycle investor. On buying specific companies, I believe it is possible (Buffett has shown it time and time again) but there must be diligence to scour through stacks of annual reports. Of course, if one is not confident, an index fund will be more ideal.

]]> http://www.bigfatpurse.com/2009/07/why-stocks/#comment-1746 Alvin Tue, 28 Jul 2009 14:32:45 +0000 http://www.bigfatpurse.com/?p=1493#comment-1746 Seems like you are a cycle investor. On buying specific companies, I believe it is possible (Buffett has shown it time and time again) but there must be diligence to scour through stacks of annual reports. Of course, if one is not confident, an index fund will be more ideal. Seems like you are a cycle investor. On buying specific companies, I believe it is possible (Buffett has shown it time and time again) but there must be diligence to scour through stacks of annual reports. Of course, if one is not confident, an index fund will be more ideal.

]]> http://www.bigfatpurse.com/2009/07/why-stocks/#comment-277 Why Stocks?  | TheFinance.sg Tue, 14 Jul 2009 01:03:32 +0000 http://www.bigfatpurse.com/?p=1493#comment-277 [...] Jeremy Siegel wrote a very easy to understanding book, “Stocks For The Long Run“, which pretty convinced me. So it is my turn to spread his words and convince you too. Read more… [...] [...] Jeremy Siegel wrote a very easy to understanding book, “Stocks For The Long Run“, which pretty convinced me. So it is my turn to spread his words and convince you too. Read more… [...]

]]> http://www.bigfatpurse.com/2009/07/why-stocks/#comment-1745 Why Stocks?  | TheFinance.sg Tue, 14 Jul 2009 01:03:32 +0000 http://www.bigfatpurse.com/?p=1493#comment-1745 [...] Jeremy Siegel wrote a very easy to understanding book, “Stocks For The Long Run“, which pretty convinced me. So it is my turn to spread his words and convince you too. Read more… [...] [...] Jeremy Siegel wrote a very easy to understanding book, “Stocks For The Long Run“, which pretty convinced me. So it is my turn to spread his words and convince you too. Read more… [...]

]]> http://www.bigfatpurse.com/2009/07/why-stocks/#comment-276 Ben Tan Mon, 13 Jul 2009 11:33:19 +0000 http://www.bigfatpurse.com/?p=1493#comment-276 The above holds through if you have a portfolio of shares that is updated over time (eg. like component shares in STI index). If you hold just a single share or even shares in certain industry sectors, those specific shares may not do so well in the long term (eg. some companies or industries die out). That's why the STI component shares are not fixed but change over time. Also, the above is true if you hold for very long term. If you hold for medium term (eg. 10 years), you will find you have made a net loss from the great crash of 2008. The safer way is to invest when shares are clearly cheap (eg. in the current recession) and sell when they are clearly expensive (eg. in the bull run) - ie. buy low, sell high. However, don't try to catch the bottom or the peak. Just do dollar averaging buying during the recession for say 1 year and then wait till bull run, then do dollar averaging selling for say 1 year. In between, just collect dividends. The above holds through if you have a portfolio of shares that is updated over time (eg. like component shares in STI index).
If you hold just a single share or even shares in certain industry sectors, those specific shares may not do so well in the long term (eg. some companies or industries die out). That’s why the STI component shares are not fixed but change over time.
Also, the above is true if you hold for very long term. If you hold for medium term (eg. 10 years), you will find you have made a net loss from the great crash of 2008.
The safer way is to invest when shares are clearly cheap (eg. in the current recession) and sell when they are clearly expensive (eg. in the bull run) – ie. buy low, sell high. However, don’t try to catch the bottom or the peak. Just do dollar averaging buying during the recession for say 1 year and then wait till bull run, then do dollar averaging selling for say 1 year. In between, just collect dividends.

]]> http://www.bigfatpurse.com/2009/07/why-stocks/#comment-1744 Ben Tan Mon, 13 Jul 2009 11:33:19 +0000 http://www.bigfatpurse.com/?p=1493#comment-1744 The above holds through if you have a portfolio of shares that is updated over time (eg. like component shares in STI index). If you hold just a single share or even shares in certain industry sectors, those specific shares may not do so well in the long term (eg. some companies or industries die out). That's why the STI component shares are not fixed but change over time. Also, the above is true if you hold for very long term. If you hold for medium term (eg. 10 years), you will find you have made a net loss from the great crash of 2008. The safer way is to invest when shares are clearly cheap (eg. in the current recession) and sell when they are clearly expensive (eg. in the bull run) - ie. buy low, sell high. However, don't try to catch the bottom or the peak. Just do dollar averaging buying during the recession for say 1 year and then wait till bull run, then do dollar averaging selling for say 1 year. In between, just collect dividends. The above holds through if you have a portfolio of shares that is updated over time (eg. like component shares in STI index).
If you hold just a single share or even shares in certain industry sectors, those specific shares may not do so well in the long term (eg. some companies or industries die out). That’s why the STI component shares are not fixed but change over time.
Also, the above is true if you hold for very long term. If you hold for medium term (eg. 10 years), you will find you have made a net loss from the great crash of 2008.
The safer way is to invest when shares are clearly cheap (eg. in the current recession) and sell when they are clearly expensive (eg. in the bull run) – ie. buy low, sell high. However, don’t try to catch the bottom or the peak. Just do dollar averaging buying during the recession for say 1 year and then wait till bull run, then do dollar averaging selling for say 1 year. In between, just collect dividends.

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