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What is long term investing...

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Super Contributor
Today I had a 2 hour meeting at Pepkor with Dr. Christo Wiese. We spoke about long term investing and what that is. 5 years? well Dr. Wiese says its much longer, his advice isn't to sell when something starts to go well because of the scare that it will 'run out of steam', he says one must hold and let it run, when we were speaking I thought of the recent conversation we had on the chat and thought of telling this to you... He said there are many people that would have been very rich due to the successes of PEP but sold out to buy a bigger car or a new house or from being scared it will drop in value... and look what happened now... just something to think about... some words from one of the most successful and best business brains in our country.
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Super Contributor
Werner, I know an individual who bought EOH at a relatively low price. This guy still holds EOH and that share is worth about R400K in profits. Now that guy has earned my respect.
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Super Contributor
Long term investing is definitely the way and one shouldn't trim the good ones to buy the not-so-good ones. Think about it, these guys in big business end up buying more and more shares in their businesses, shouldn't we as investors also do that on the winners? this is the opposite of diversification. just a thought...
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Super Contributor
Werner I am in for the long term which in my book means lifelong. In our discussion I refered to interalia SOL,KIO,APN,TBS etc.If I could have known upfront for instance of the SOL direction I would have responded by moving that money to a more profitable allocation even for the time being.And that is exactly what I do nearly on a daily basis.If I am convinced that elsewhere can be done better, I move.I don't wheel and deal, I evaluate, consider and think twice before acting. Most shares will not be sold on average during any given 12mnths and some nearly never.But the "probleemkinders" will.What I said is that sometimes I am caught off guard as mentioned and that those mistakes are expensive.Just as Wiese is in his business for longterm I am in mine.But our businesses differ. And it work well for me with YTD(2015) outperforming the ALSI(5%) with a reasonable 14,8%. I wont normally describe this as timing the market but rather reacting to the obvious, only sometimes the obvious become a little blurred. Damn,you will have to be fairly intelligent to understand this, even I am struggling to follow my own argument.You remember the reference to "gut feel" and common sense? I am not a Trader but I try to be as alert as a Trader.
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Super Contributor
I understand your comments and it makes sense! What I find a bit difficult is to time those times so that one doesn't loose out on gains if one gets it wrong, and then the angle of the tax payments, etc. but your view is understandable completely. However I am very keen to build an empire by M&A sometime... imagine how cool that would be!
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Super Contributor
wise words.I invest with a 15 to 20 year view and I will be coming up as a 20 year full time investor next year.the best investment I have done I have kept for 19 years and now pays a dividend greater than my original investment.however for me if a good share goes so high that its div falls below 2% I look to move some of the money out to invest in another long term investment-with some success.over 19 years I have made plenty of mistakes but as I diversified non of them forced me to go back to work for someone else.been lucky and been sensible and feel very blessed
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Super Contributor
I am a firm believer that investments should be individualised to your needs and you need to react to the market with your investments. Would you be a long term investor in any resources as an example for the next year? Taking nothing away from Dr. Wiese, brilliant man, but having another 100 million to back up a failed investment after 5years changes the way you invest. Some people may have bought fancy new cars after having sold shares in PEP or which ever and others may have taken that money and bought Naspers at 100/200/500 and still made more than 100%. Not beating any method down but you should use what works for you.
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Super Contributor
I am a firm believer that investments should be individualised to your needs and you need to react to the market with your investments. Would you be a long term investor in any resources as an example for the next year? Taking nothing away from Dr. Wiese, brilliant man, but having another 100 million to back up a failed investment after 5years changes the way you invest. Some people may have bought fancy new cars after having sold shares in PEP or which ever and others may have taken that money and bought Naspers at 100/200/500 and still made more than 100%. Not beating any method down but you should use what works for you.
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TAKR
Contributor
IÂ’m in it for the long haul 10-15 years and let it be said Im and absolute novice at this, so the way I have been doing it is, I have built a portfolio over time albeit a shortish time. I will give you an example. I started 4 years ago with a foundation of BAT, Curro, EOH, AFT, CIL, FBR, GPL, MPC, SOL, OML, SFH. TAS, PSG. Then 3 years ago I added NPN, REI and 2 years ago WHL, 12 months ago I sold SOL, TASTE, PSG, GPL and CIL and bought RFG, PGR and ACG. That in a nutshell is the buying and selling of my complete portfolio for the last 4 years. I donÂ’t know anything about trading so from a noviceÂ’s position in my opinion, building a portfolio and accumulating shares over time is the way to go.
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Super Contributor
In my opinion that is the way to make substantial gains over time. its the best way that's proven to be successful.
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Super Contributor
Werner, why did you meet with Wiese, and he just granted you an audience?
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Super Contributor
Yes, in the beginning of the year I started a trend in our MBA program, Boardroom Chats, and since then we met a few CEOs, Chairmen, etc, first was Dr Edwin Hertzog from Mediclinic/Remgro... Dr Wiese knows one of my classmates very well and instantly invited us to his offices where we had a 2 hour chat about leadership, strategy and how they built PEPKOR. He is also a alumni from the Stellenbosch University and it seems these guys like chatting with the current students from the university.
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