Long term investor

wis · 1 Long term investor Thu Mar 03, 2011 10:11 pm

wis

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I asked this question a long time ago but there wasn't a satisfactory response. May be there is no such thing in CSE. Anyway I ask again.

Invest in good businesses and wait more than 5 years. That's what the stock market investing guides say. But does the long term investing in the CSE outperform the 12% prevailing fixed deposit rate? Or is the CSE good for only short term buying and selling? I have a feeling at the end of this year the so called fundamentally strong stocks will remain remain virtually at the same level.

tubal · 2 Re: Long term investor Thu Mar 03, 2011 10:31 pm

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wis wrote:I asked this question a long time ago but there wasn't a satisfactory response. May be there is no such thing in CSE. Anyway I ask again.

Invest in good businesses and wait more than 5 years. That's what the stock market investing guides say. But does the long term investing in the CSE outperform the 12% prevailing fixed deposit rate? Or is the CSE good for only short term buying and selling? I have a feeling at the end of this year the so called fundamentally strong stocks will remain remain virtually at the same level.

I bought DIAL and LIOC from the IPO. Still have the DIAL. Does that answer your question?

wis · 3 Re: Long term investor Thu Mar 03, 2011 10:50 pm

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You have chosen the most extreme 2. After 5-6 years DIAL return is little less than 0%. LIOC fate is very much less than that. But both are very good companies but forces beyond their control did that. That is considering what happened in the past.
So I guess it means CSE has no such thing as long term investing. Flat line.

UKboy · 4 Re: Long term investor Fri Mar 04, 2011 1:55 am

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Hopefully after end of June you will see a market mainly driven by fundamentals not rumours.
Last few years people didnt excatly want to know where they have to invest. Whole CSE was a cash cow.
Yes i agreed there are few companies shares has not moved alot in last few years. But in general you would have earned a fortune at the same time.
My CFLB share were merely cost me Rs34.00 each less than two years ago. In the current market I can easily sell it for over Rs400.00 ( But I wont sell short term). In the same time I'm in red with HAYC.

Therefore I can only say that go for 100% long term investments is not a wise move.

But become a 100% short term investor is much more dangerous than 100% long term.

Last edited by UKboy on Fri Mar 04, 2011 4:07 am; edited 1 time in total

mono · 5 Re: Long term investor Fri Mar 04, 2011 2:31 am

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investing is a lot about finding a system that you are most comfortable with from a psychological perspective, that can be short term rapid trading or it can be long term investing. if you are trading/investing in a way that doesn't fit your psyche, both long & short term investments will not work out for you. to a certain degree you need to ask yourself what you are good at and what you are bad at, then figure out a system that plays to your strengths and downplays your weaknesses.

Monster · 6 Re: Long term investor Fri Mar 04, 2011 2:53 am

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We take profits by selling our appreciated shares, but we hold onto stocks that have declined in the hope of a rebound. If an investor doesn't know when it's time to let go of hopeless stocks, he can, in the worst-case scenario, see the stock sink to the point where it is almost worthless. Of course, the idea of holding onto high-quality investments while selling the poor ones.

Bulls Make Money, Bears Make Money, Pigs Get Slaughtered

limestone · 7 Re: Long term investor Fri Mar 04, 2011 7:11 pm

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Its not advisable to keep shares for ever . I lost all my investment in VANIK and VAYTEX . though they are still listed in my portfolio as worth only one rupee per share but can not trade .

Monster · 8 Re: Long term investor Fri Mar 04, 2011 7:15 pm

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limestone wrote:Its not advisable to keep shares for ever . I lost all my investment in VANIK and VAYTEX . though they are still listed in my portfolio as worth only one rupee per share but can not trade .

Don’t get married to a stock

Meta Trader · 9 Re: Long term investor Fri Mar 04, 2011 7:41 pm

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wis wrote:I asked this question a long time ago but there wasn't a satisfactory response. May be there is no such thing in CSE. Anyway I ask again.

Invest in good businesses and wait more than 5 years. That's what the stock market investing guides say. But does the long term investing in the CSE outperform the 12% prevailing fixed deposit rate? Or is the CSE good for only short term buying and selling? I have a feeling at the end of this year the so called fundamentally strong stocks will remain remain virtually at the same level.

well when it come to investing i don't invest on some thing that i don't understand and have no control.

in CSE there are plenty of companies i don't understand and i don't have any control over any company .
so i prefer to be a Trader . Twisted Evil