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what to buy

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Valued Contributor
but how do you know this is a "downward spiral" and not a simple pull back ?? in which case you sell only to watch it rise so now you buy and then it dips .. an so on ..

nope, long term investor, buy quality when it is cheap and hold forever or until the co is no longer quality, whichever comes first ..
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Super Contributor
@ Simon, i disagree with you.
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Super Contributor
@simon, So when is a stock cheap? What is your criteria?
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Valued Contributor
we have been down this road on WHL (when you decided to attack for some random reason), I explained it to you and you promised to get back to me .. I waiting ..
bigger picture is that there are a million+1 ways to define cheap, an investor needs to find one that works and makes sense for them
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Regular Contributor
@ Simon. There are 3 ways an investors can create wealth. 1)Share appreciation 2)Cash flow stream ie dividend stream 3)By increasing the qty of units held.
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Super Contributor
no preston, not yet, a close above 125 and i also be buying..retrace below and be selling more...so you see, either way, the market is making money for me...it called trading ..
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Valued Contributor
no, you are mixing the concepts, one is company other is investor .. 3 ways a company price increases, HEPS increase, cash flows to investor (divs) increase and rerating of share (cheap to expensive) .. investor makes money buy buying a stock that goes up, they make best money when all three kick in giving max upside
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Super Contributor
Apologies for posting from incorrect account. @simon, So let address point 3. Increasing the number of unit held. Let go retro 1) AMS was trading at R1200 a share (back in days) and you bought 10 Qty. 2) When AMS starting to fall, you sold and at R500 , you bought 24 shares ((1200*10)/500) 3. Your intention is still to hold the share for the long run, only difference is that you advantage of an opportunity to grab more qty with the same process. 4) Have you create Wealth by taking advantage of an Opportunity? This is where i disagree with Buy and Hold till death do us part.
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Super Contributor
Apologies for posting from incorrect account. @simon, So let address point 3. Increasing the number of unit held. Let go retro 1) AMS was trading at R1200 a share (back in days) and you bought 10 Qty. 2) When AMS starting to fall, you sold and at R500 , you bought 24 shares ((1200*10)/500) 3. Your intention is still to hold the share for the long run, only difference is that you advantage of an opportunity to grab more qty with the same process. 4) Have you create Wealth by taking advantage of an Opportunity? This is where i disagree with Buy and Hold till death do us part.
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Super Contributor
preston, you really are confusing the lemonade out of lemons story from Grahams book you quoted, we been thru this so many times...the strategy you using works only if you in a losing position on your investments...as Simon said, you dont know that the share going to spiral down until it does, so when it does, sell it, claim the loss from taxman, then buy the share back when it cheaper...remember nothing wrong wth the company, you just paid the wrong price...go read again
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Super Contributor
@Rams, you are quoting the wrong charpter.
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Super Contributor
then i suggest you read the wrong chapter...
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Super Contributor
@simon, i agree with this "there are a million+1 ways to define cheap, an investor needs to find one that works and makes sense for them"
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Super Contributor
@Rams, I will go and read the WRONG chapter, but it does diminish the principle embodied in the RIGHT chapter.
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Super Contributor
ignore the right chapter and concentrate only on the wrong chapter
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Super Contributor
I will focus on the wrong chapter to grasp the wrong NON TRADABLE principle. lol BTW Be very careful with MSM, you could be caught with your pants down and with the Royal jewels fully exposed. There is something that you are not seeing with the share.
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Super Contributor
I will focus on the wrong chapter to grasp the wrong NON TRADABLE principle. lol BTW Be very careful with MSM, you could be caught with your pants down and with the Royal jewels fully exposed. There is something that you are not seeing with the share.
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Super Contributor
Moer Trix - this is a bit of a mouth-full thread to follow. But what I would do is use the share filter and find a few values, or ratios, to filter out some shares for consideration. Typically I might use PE ratios, DY yields, ROCE etc to filter out the companies. Then I would try to do some research on those selected to see if they are truly "cheap" or not.
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Super Contributor
sure, i will be stopped out, then i buy more(cant claim from tax, becos i be stoppped out a profit)
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Highlighted
Super Contributor
As a shareholder you own part of the company. It is therefore your business. So what do you do when you own a business? Grow the profits, pay yourself (divs) and grow in value, basically the essence of long term investing/ownership call it what you like. I hope this simplifies this thread.
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