Who have experience in long term investments?

ccsentha

ccsentha

Vice President - Equity Analytics

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Is there any of you who have experience in long term investments?

Guys if so please share your experiences. We have heard many success stories, is there some one who had been affected by long term investment?

Last edited by rijayasooriya on Sat Nov 12, 2011 12:57 am; edited 1 time in total (Reason for editing : title shortened.)

Sat Nov 12, 2011 5:29 am by Slstock · Sat Nov 12, 2011 5:29 am by Slstock

One out of several stories,

Bought DFCC for Rs 140 in a right issue. Saw it dip to Rs 50+ early 2008. ( JKH was Rs 60s) Had a near heart attack.

Did not loose nerve. Held on to them. After war DFCC share went Rs 500+. Then bonus 1 share for 1.

Now DFCC back to Rs 118s ( shares doubled though).

I will need to dig into share bought early 2000s with statistics and I am sure I can better this story many many times over.

Sat Nov 12, 2011 5:31 am by Slstock · Sat Nov 12, 2011 5:31 am by Slstock

Think I heard this from respected gentlemen in this forum.

COMB price in 1970s was around 17/- and a gentleman working as a clerk in Colombo bought 100 shares with his 6 months savings.

He had a little kid , a girl, and his wife was not doing a job. He could not continue any investment activities thereafter, due to financial commitments.

After many years, his holding in COMB rose to few 1000s ( I think about 7000 / 9000 ) because of regular 1 : 1 / 1:2 yearly bonus given at that time.

In 1990s he got retired and 2 years later, this retired clerk took his daughter's wedding in Hotel Intercontinental with the cost of 200,000/- and he gave her about 600,000/- to her as the dowry ( a very big amount at that time) ; surprising all the relatives and friends around him.

He did all this BY SELLING HIS COMB shares he bought for 1,700.00 years ago.

Sat Nov 12, 2011 5:52 am by sriranga · Sat Nov 12, 2011 5:52 am by sriranga

slstock wrote:
Think I heard this from respected gentlemen in this forum.

COMB price in 1970s was around 17/- and a gentleman working as a clerk in Colombo bought 100 shares with his 6 months savings.

He had a little kid , a girl, and his wife was not doing a job. He could not continue any investment activities thereafter, due to financial commitments.

After many years, his holding in COMB rose to few 1000s ( I think about 7000 / 9000 ) because of regular 1 : 1 / 1:2 yearly bonus given at that time.

In 1990s he got retired and 2 years later, this retired clerk took his daughter's wedding in Hotel Intercontinental with the cost of 200,000/- and he gave her about 600,000/- to her as the dowry ( a very big amount at that time) ; surprising all the relatives and friends around him.

He did all this BY SELLING HIS COMB shares he bought for 1,700.00 years ago.

Well said slstock.
I also have the same stories with my relatives.

@ccsentha

Please read this link, you can see how the long term investment is growing.
http://forum.srilankaequity.com/t12425-brainteaser-quiz-result-cic-company-detail-updated

Sat Nov 12, 2011 11:30 am by Niwa · Sat Nov 12, 2011 11:30 am by Niwa

One of my friends father had bought 1000 NEST shares at the IPO,each at Rs.10. His father died some years ago leaving this precious wealth to him and his mother.Recently they sold that 1000 shares for Rs. 850000. I think his father had bought them in early 80s.

Sat Nov 12, 2011 12:08 pm by Slstock · Sat Nov 12, 2011 12:08 pm by Slstock

Niwa wrote:One of my friends father had bought 1000 NEST shares at the IPO,each at Rs.10. His father died some years ago leaving this precious wealth to him and his mother.Recently they sold that 1000 shares for Rs. 850000. I think his father had bought them in early 80s.

They probably would have more shares now. NEST should have had some bonus, split within 30 years?

Sat Nov 12, 2011 12:10 pm by rijayasooriya · Sat Nov 12, 2011 12:10 pm by rijayasooriya

Please consider the deflation of rupee value when reading these stories.
ඒ කාලේ සීයකින් කරපු වැඩ දැන් ලක්ෂයකින් කරන්නත් බැහැ නොවැ... Wink

Sat Nov 12, 2011 1:03 pm by Niwa · Sat Nov 12, 2011 1:03 pm by Niwa

slstock wrote:

Niwa wrote:One of my friends father had bought 1000 NEST shares at the IPO,each at Rs.10. His father died some years ago leaving this precious wealth to him and his mother.Recently they sold that 1000 shares for Rs. 850000. I think his father had bought them in early 80s.

They probably would have more shares now. NEST should have had some bonus, split within 30 years?

They got only 1000 shares as written on the certificate. yearly, thy had received bonus cheque. I think there had not been any share split or right issue withing this period.im not sure.

Sat Nov 12, 2011 1:30 pm by Slstock · Sat Nov 12, 2011 1:30 pm by Slstock

Niwa wrote:

slstock wrote:

Niwa wrote:One of my friends father had bought 1000 NEST shares at the IPO,each at Rs.10. His father died some years ago leaving this precious wealth to him and his mother.Recently they sold that 1000 shares for Rs. 850000. I think his father had bought them in early 80s.

They probably would have more shares now. NEST should have had some bonus, split within 30 years?

They got only 1000 shares as written on the certificate. yearly, thy had received bonus cheque. I think there had not been any share split or right issue withing this period.im not sure.

I hope they have not just lodged the certificate through broker and sold it as it was 1000 shares on it.

To make sure there were no bonuses or split it is best to check with NEST company secretory.
If there was, they will be multi millionaires now

Sat Nov 12, 2011 3:12 pm by Niwa · Sat Nov 12, 2011 3:12 pm by Niwa

slstock wrote:

Niwa wrote:

slstock wrote:

Niwa wrote:One of my friends father had bought 1000 NEST shares at the IPO,each at Rs.10. His father died some years ago leaving this precious wealth to him and his mother.Recently they sold that 1000 shares for Rs. 850000. I think his father had bought them in early 80s.

They probably would have more shares now. NEST should have had some bonus, split within 30 years?

They got only 1000 shares as written on the certificate. yearly, thy had received bonus cheque. I think there had not been any share split or right issue withing this period.im not sure.

I hope they have not just lodged the certificate through broker and sold it as it was 1000 shares on it.

To make sure there were no bonuses or split it is best to check with NEST company secretory.
If there was, they will be multi millionaires now

They had to open a CDS account and lodge the shares there. after his fathers dead, the certificated had to be changed into his mothers name so CDS account opened to his mothers name.

Sat Nov 12, 2011 3:24 pm by Slstock · Sat Nov 12, 2011 3:24 pm by Slstock

Niwa wrote:

slstock wrote:

Niwa wrote:

slstock wrote:

Niwa wrote:One of my friends father had bought 1000 NEST shares at the IPO,each at Rs.10. His father died some years ago leaving this precious wealth to him and his mother.Recently they sold that 1000 shares for Rs. 850000. I think his father had bought them in early 80s.

They probably would have more shares now. NEST should have had some bonus, split within 30 years?

They got only 1000 shares as written on the certificate. yearly, thy had received bonus cheque. I think there had not been any share split or right issue withing this period.im not sure.

I hope they have not just lodged the certificate through broker and sold it as it was 1000 shares on it.

To make sure there were no bonuses or split it is best to check with NEST company secretory.
If there was, they will be multi millionaires now

They had to open a CDS account and lodge the shares there. after his fathers dead, the certificated had to be changed into his mothers name so CDS account opened to his mothers name.

Thats all fine, but need to check with company secretory to make sure how many they own now. 1000 in 1980. How many now. Still 1000?

Sat Nov 12, 2011 3:30 pm by Niwa · Sat Nov 12, 2011 3:30 pm by Niwa

slstock wrote:

Niwa wrote:

slstock wrote:

Niwa wrote:

slstock wrote:

Niwa wrote:One of my friends father had bought 1000 NEST shares at the IPO,each at Rs.10. His father died some years ago leaving this precious wealth to him and his mother.Recently they sold that 1000 shares for Rs. 850000. I think his father had bought them in early 80s.

They probably would have more shares now. NEST should have had some bonus, split within 30 years?

They got only 1000 shares as written on the certificate. yearly, thy had received bonus cheque. I think there had not been any share split or right issue withing this period.im not sure.

they got nothing except that 1000 thats why i think they got Rs.850000 for 1000 shares. any way ill ask him to check it with his broker.

I hope they have not just lodged the certificate through broker and sold it as it was 1000 shares on it.

To make sure there were no bonuses or split it is best to check with NEST company secretory.
If there was, they will be multi millionaires now

They had to open a CDS account and lodge the shares there. after his fathers dead, the certificated had to be changed into his mothers name so CDS account opened to his mothers name.

Thats all fine, but need to check with company secretory to make sure how many they own now. 1000 in 1980. How many now. Still 1000?

Sat Nov 12, 2011 4:23 pm by Chabbi · Sat Nov 12, 2011 4:23 pm by Chabbi

@ CCS

Y one story ?? i would read thousands of stories !!! U knw my Finance Lec from Uni Colombo (Finance Expertise)

When he was @ Studying couple years back ... bought DOCK from IPO @ each 11 .. not much only 100 shares ....

See the value of DOCK now !!!!!! Dnt forget dock pays more than 8+ Dividend last few years !!!!!!!!!

He said still he holds his Certificate & it will be gives dividend than its initial investment .... This makes me here Razz

I also bought REEF @ 2.00 few years ago ... Razz

but due to panic sold couple of months back arnd 40+ Razz

Aftr getting Warrents Razz

Sat Nov 12, 2011 8:07 pm by smallville · Sat Nov 12, 2011 8:07 pm by smallville

So sad I've given up my mid-long term counters and kept cash.. REEF has done wonders for me when this was trading ard 20 before the consolidation. I sold and moved out but I feel like I've kept those..

Another one was BFL from the recent past.. I only had to keep this for 4-6 months to see this grew to a 3 bagger for the price I've bought..

When you buy the right stocks at right time, its a good investment.. And if you dont sell it at a high to buy back again I personally consider it as an opportunity loss..
So when ever u go for longer term investment, u r also provided with short-mid term benefits which u can catch if u be vigilant Wink

The most important thing is to go behind the businesses that u can understand, business models that u can easily figure out, the industries that have potential growth in coming months and years, in addition; if economic policies and factors influencing the industry to be favourable to continue the operation in future - that's an industry that I'd consider as growing and value for my money..

Sat Nov 12, 2011 9:09 pm by Kithsiri · Sat Nov 12, 2011 9:09 pm by Kithsiri

rijayasooriya wrote:Please consider the deflation of rupee value when reading these stories.
ඒ කාලේ සීයකින් කරපු වැඩ දැන් ලක්ෂයකින් කරන්නත් බැහැ නොවැ...

I bought NTB @ 18 but I am still not in a mood to retire or give my daughter away in marriage.

Will the history be repeated (The elderly gentleman’s story) in a few years time when it comes to me for both those actions?

I am very sceptical as way the things are running in this country at the moment, unless we see a great change soon. Rolling Eyes

Sun Nov 13, 2011 1:26 am by **mark** · Sun Nov 13, 2011 1:26 am by **mark**

wow,great patience you guys had Very Happy

btw im nt a longterm guy and nor short term or mid term,there is no such words to me,i do behave as the system and atmosphere,thats the bestway for me to survive..btw il be quit in near days,bcz i cnt cope with this mkt environmnt and studies at once,specially when mkt dnt make sense to me..

Sun Nov 13, 2011 3:31 am by UKboy · Sun Nov 13, 2011 3:31 am by UKboy

slstock wrote:
One out of several stories,

Bought DFCC for Rs 140 in a right issue. Saw it dip to Rs 50+ early 2008. ( JKH was Rs 60s) Had a near heart attack.
I will need to dig into share bought early 2000s with statistics and I am sure I can better this story many many times over.

Yeah as slstock said there are many stories.
Whoever bought shares prior to 2009 could easily exit the market with hefty gains (almost all the times).
I can remember once "mono" said that we should thank to whoever jumped into the market around 2010. Which is true.
But repeating those stories in such short time ( less than 2 years) will not gonna be easy.

Once I bought DIMO shares for 120 each and soon after I bought the shares it went down below 100 and stagnated for long time. As same as slstock I nearly had a heart attack. But slowly and steadily DIMO share appreciated to around 1400. Still it was heavily undervalued but thought it was the time to sell. So I disposed those shares with more than 1000% gain.

There are many good counters in the market for very reasonable prices.

Sun Nov 13, 2011 10:57 am by Rajitha · Sun Nov 13, 2011 10:57 am by Rajitha

Long term investment is a Short Term investment that failed!

BTW No the market won't go up like after the war! ALL the long term investments people are telling they earned are earned because of the hike after war!

Only way you going to make a good long term gain is if market again falls below ASI 5000 and you buy it then and hold!

Sun Nov 13, 2011 2:47 pm by Slstock · Sun Nov 13, 2011 2:47 pm by Slstock

Rajitha wrote:Long term investment is a Short Term investment that failed!

BTW No the market won't go up like after the war! ALL the long term investments people are telling they earned are earned because of the hike after war!

Only way you going to make a good long term gain is if market again falls below ASI 5000 and you buy it then and hold!

Rajitha,

With no offence curios to know when you first stared investing at CSE ( just for my understanding)?

As you state you are a short term trader. So I can assume you have not tried long term investments ( holding a good company for 5 years atleast. )?

What about the people who simply do not have the time or opt not trade always? What about the billionaires who got very rich through stock investments. Are you saying their strategies are failed attempts of short term investment and they could have gained more if they invested short term.

Short term strategy and long term strategy is different. We must have had this discussion so many times.

Okay I agree that at CSE after war recovery was an exception.

So lets forget about after war.

Did you see the
1) COMB example
2) Sri Ranga's CIC example

Also , within the last decade, I do recall I bought JKH for around Rs 60+ in 2001 or so. I have not calculated but how many times would it have grown with splits, rights and capital gains , dividens etc ? I did study and knew JKH was solid so I bought and forgot.
It did not fail me. If I spent too much time to identify peaks and bottoms at that time, I would have not got far in my caeerer. So there is opportunity cost there too.

We need to understand and respect different investment strategies . People should do what best works for them.

Sun Nov 13, 2011 2:59 pm by Slstock · Sun Nov 13, 2011 2:59 pm by Slstock

Btw I believe a good investor should have a mix of

1) long term
2) mid term
3) short term
share in the portfolio.

Nothing wrong in long term , mid term or short term if you know you targets , what you are buying and period of investment.

Sun Nov 13, 2011 3:21 pm by Rajitha · Sun Nov 13, 2011 3:21 pm by Rajitha

FYI I'm not a trader! But an investor!

These days I hardly have ever looked at CSE at all! In-fact have not done a trade in CSE from over 3 weeks!
As for the questions about my trading past I started investing last year September and 5 years ago was not even in Sri Lanka! But that does not mean I have not done my studies about the past! When I mean short term I don't mean day or 2 but most probably from 1week to about 3 months!

Can you people explain a huge long term gain that does not include the years from 2009 ?? As most people here say they have been on the market for ages so show us great examples? I can bet I can show some companies with few short term ( 1-2 months ) investments that gave way more return!

Also about the examples you said! Those examples sucked hardcore man! Did you check what would have been the fix deposit or treasury bill gain if some one put the money in them during those times? I can remember that those days the Fix deposit and treasury bill gains were over 20% per year! Do the calculations and see what is better!

Sun Nov 13, 2011 3:25 pm by Rajitha · Sun Nov 13, 2011 3:25 pm by Rajitha

Also about your JKH counter ! You had that investment since 2001 right? So up to 2009 before the war ended how much was your capital gain? You said you studied it and it had 8 years to gain? Did you gain more than a fixed deposit or buying a pies of land ?

Sun Nov 13, 2011 3:33 pm by Slstock · Sun Nov 13, 2011 3:33 pm by Slstock

Rajitha wrote:FYI I'm not a trader! But an investor!

These days I hardly have ever looked at CSE at all! In-fact have not done a trade in CSE from over 3 weeks!
As for the questions about my trading past I started investing last year September and 5 years ago was not even in Sri Lanka! But that does not mean I have not done my studies about the past! When I mean short term I don't mean day or 2 but most probably from 1week to about 3 months!

Can you people explain a huge long term gain that does not include the years from 2009 ?? As most people here say they have been on the market for ages so show us great examples? I can bet I can show some companies with few short term ( 1-2 months ) investments that gave way more return!

Also about the examples you said! Those examples sucked hardcore man! Did you check what would have been the fix deposit or treasury bill gain if some one put the money in them during those times? I can remember that those days the Fix deposit and treasury bill gains were over 20% per year! Do the calculations and see what is better!

The original posters title says "Who have experience in long term investments?" so we were replying our experiences to it.

If that strategy does not work for one, they can opt for another. No complain there.

But just like short term players, day traders are important to stock markets , long term players are also equally important to maintain stability.

Best that we follow our own strategies which work for us and respect others strategies as well.

Sun Nov 13, 2011 3:43 pm by Slstock · Sun Nov 13, 2011 3:43 pm by Slstock

Rajitha wrote:Also about your JKH counter ! You had that investment since 2001 right? So up to 2009 before the war ended how much was your capital gain? You said you studied it and it had 8 years to gain? Did you gain more than a fixed deposit or buying a pies of land ?

I failed to mention was that I sold PART of it in 2005 0r 2006 for a need with over 3 times profit at least( from memroy). It would have certainly bettered an FD even with 20% per annum compounded. That should itself answer your query I believe.

Btw, when I said long term, I never meant you never sell or hold for ever as it would be silly.

Sun Nov 13, 2011 3:51 pm by Rajitha · Sun Nov 13, 2011 3:51 pm by Rajitha

slstock wrote:

Rajitha wrote:Also about your JKH counter ! You had that investment since 2001 right? So up to 2009 before the war ended how much was your capital gain? You said you studied it and it had 8 years to gain? Did you gain more than a fixed deposit or buying a pies of land ?

I failed to mention was that I sold PART of it in 2005 0r 2006 for a need with over 3 times profit at least( from memroy). It would have certainly bettered an FD even with 20% per annum compounded. That should itself answer your query I believe.

Btw, when I said long term, I never meant you never sell or hold for ever as it would be silly.

As I Can see from
http://www.bloomberg.com/apps/quote?ticker=JKH:SL
JKH started year 2007 at Rs 100 and went as low about Rs 35 in year 2009! That is including all the splits and bonus issues included! How ever I can't find older data so I will take your word for it! But still I fail to see how you could have sold with 3x gain looking at those charts!