Good morning, I just need some advice on what to do here, I am currently holding a mass amount of shares in Sasol. I bought Sasol shares for a long term position, I bought in at R470,obviously we can see I'm down.... Should I sell and try and re-enter at better price or ride it out????? My long term view is about 5 to 10 years?
Nobody knows the answer to your question on "time". Attempting to time the market is IMPOSSIBLE in the short term.SOL is a quality company with great economic prospects. No, I do not hold SOL at this time. PS google "margin of safety buffet"
I haven't been trading for long but this is my opinion.10 years is a really long time. There are many things to consider. I do believe that SOL is a great company and i do believe it will grow in the future. Having said that, the globe is moving to other sources of energy as they are realising oil is getting scarce, which is bad for SOL. In 5 years i believe it will grow but in 10 years it could be risky. Why not put your money in a share like MTN or a banking share where you know there is no real risk which we know of. As i said, that's only my opinion.
LG excuse me..it is very very possible to time the market. Nothing is impossible. As an investor, it is the trend and not the bottom that matters( for you to make any money in stocks the price must rise and as a long term investor it must rise consistantly over time = trend.)Going back to Sasol... you mistimed your buy based on the current share price so what? If the trend for oil and energy continues Sasol should also rise along with that rising global trend. So forgive yourself the mistake of mistiming the market, after all you are new at this and let the market do its thing. SASOL is a great long term hold.
LG buying shares at below there VALUE is a form of market timing. Not an effective one but it still is a form of timing. Nobody ever buys without trying to time the market as this yourster has demonstrated with his post.
John... you are officially excused. I hold the view that it is IMPOSSIBLE to time the markets in the short term CONSISTENTLY. The only trend that I look out for is the PROFIT (earnings) trend. There is a big difference between paying too much for a share and therefore not getting value nor having a "margin of safety" and mistiming a purchase of a share. Price is what you pay, value is what you get. If you do not pay the correct price you do not get value.
Rossi, if it's any consolation I bought Impala in May (based on both Fundamentals and Technical Analysis), at 335, but it has since fallen to 230. But I'm not jumping out bcos, firstly, the stock has already fallen substantially for me to salvage anything and at this level chances are it will hold and swing up rather than fall further. Plus the fundamentals remain +ve, with Zimbabwe potentially coming Ok. On Sasol, they are pumping money even at $90 bcos of their coal-to-liquid process, and that's set to be a key advantage going forward. However, their Capex ambitions (including Sasol 3 in the Waterberg), could stifle net cash flows and dividends. SO HOLD ROSSI.
Perhaps we need to be a little wary of the platinums? A couple of weeks ago OST did an excellent fully reasoned analysis of where plats are going, the quick version being that by 2012 demand will have tapered off substantially. But today The Daily Standard is suggesting that 2008 and 2009 aren't going to be great either, also due to decreased demand. I've been waiting to add to my IMPs, but I think I'm going to think again. And it was just a few short weeks ago that I was one of those who believed plats were going to go up forever.
You have sold a quality company with good prospects at a fair price and bought another quality company with good prospects available at below a fair price. OMO. Why did you swap? Long or short term buy?