Posted by 3iii > 2018-09-01 18:44 |

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Posted by 3iii > 2018-09-01 21:21 | Report Abuse

Why Buy and Hold Will Always Be a Sound Investing Strategy

It seems like the debate regarding the merits of the "buy-and-hold" investing strategy is alive and well. We always find these discussions amusing, because we believe that it is such a pointless discussion.

There is no general argument or case that can be made to support the buy-and-hold strategy or to negate it.

The only true answer to the buy-and-hold argument is it depends on what and/or when you buy-and-hold.

- If you buy the right company at the right price, then buy-and-hold is a great strategy.

- If you buy the wrong company at any price, then the buy-and-hold strategy is a dumb move.

- Also, if you buy the right company at the wrong price, then buy-and-hold would once again be a bad move.

Posted by 3iii > 2018-09-01 21:22 | Report Abuse

- If you buy the right company at the right price, then buy-and-hold is a great strategy.

- If you buy the wrong company at any price, then the buy-and-hold strategy is a dumb move.

- Also, if you buy the right company at the wrong price, then buy-and-hold would once again be a bad move.

Posted by 3iii > 2018-09-01 21:25 |

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Posted by 3iii > 2018-09-01 21:32 |

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Posted by 3iii > 2018-09-01 21:36 | Report Abuse

News you could use


Stocks are crashing, so you turn on the television to catch the latest market news. But instead of CNBC or CNN, imagine that you can tune in to the Benjamin Graham Financial Network. On BGFN, the audio doesn't capture that famous sour clang of the market's closing bell; the video doesn't home in on brokers scurrying across the floor of the stock exchange like angry rodents. Nor does BGRN run any footage of investors gasping on frozen sidewalks as red arrows whiz overhead on electronic stock tickers.

Instead, the image that fills your TV screen is the facade of the New York Stock Exchange, festooned with a huge banner reading:

"SALE! 50% OFF!"

As intro music, Bachman-Turner Overdrive can be heard blaring a few bars of their old barn-burner, "You Ain't Seen Nothing' Yet."

Then the anchorman announces brightly, "Stocks became more attractive yet again today, as the Dow dropped another 2.5% on heavy volume - the fourth day in a row that stocks have gotten cheaper. Tech investors fared even better, as leading companies like Microsoft lost nearly 5% on the day, making them even more affordable. That comes on top of the good news of the past year, in which stocks have already lost 50%, putting them at bargain levels not seen in years. And some prominent analysts are optimistic that prices may drop still further in the weeks and months to come."

The newscast cuts over to market strategist Ignatz Anderson of the Wall Street firm of Ketchum & Skinner, who says, "My forecast is for stocks to lose another 15% by June. I'm cautiously optimistic that if everything goes well, stocks could lose 25%, maybe more."

"Let's hope Ignatz Anderson is right," the anchor says cheerily. "Falling stock prices would be fabulous news for any investor with a very long horizon. And now over to Wally Wood for our exclusive AccuWeather forecast."


Ref: Intelligent Investor by Benjamin Graham

Posted by 3iii > 2018-09-01 21:39 | Report Abuse

THE ANXIETY OF SELLING

A vexing question facing investors during market sell-offs is whether to join the pack. For value investors, the answer is no, but the more pertinent question is when to sell.

Value investors set selling criteria at the time of purchase. #Their attitude in buying is to select stocks that are least likely ever to trigger the criteria for selling.#

But businesses change, and when they deteriorate, their shares should be sold, just as the owner of a business sometimes must decide to close down.

When selecting stocks, value investors specify what deterioration means for purposes of selling. The logic is simple: The same factors used to select and avoid stocks are used to decide which stocks to sell and when.

Posted by 3iii > 2018-09-01 21:42 |

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Posted by 3iii > 2018-09-01 21:47 |

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Posted by 3iii > 2018-09-01 21:54 |

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Posted by 3iii > 2018-09-01 21:58 | Report Abuse

A. Taking profit

Profit should be realised from sales of stocks in the following situations:
(I) when the stock is obviously overpriced, or
(II) when the sale of the stock frees the capital to be reinvested into another stock with potentially better return.

Not taking profit in the above situations can harm your portfolio and compromise its returns. In other circumstances, let the winners run.

Underperforming stocks should also be sold early. Hanging onto underperforming stocks is costly too. There is the opportunity cost that the capital can be better employed for higher return. Also, hanging onto these lack-lustre stocks reduces the overall return of your portfolio.




B. Reducing serious loss

When the fundamentals of a stock have deteriorated, sell to protect your portfolio. This decision should be make quickly based on the facts and situations, in order to keep your losses small.

Posted by 3iii > 2018-09-01 22:03 |

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Posted by 3iii > 2018-09-01 22:21 | Report Abuse

GOOD COMPANIES ARE NOT ALWAYS A ''BUY''

Buying a ''good'' company at the wrong price can seriously affect overall returns.

ABCD, a very good company, generated earnings per share of about 50 cents in 1999-2000 and was trading at around $20 – equivalent to 40 times earnings.

Despite good earnings growth, it did not offer good value at that price.
- Ten years on, earnings have doubled to $1 while the share price has halved to $10.
- The stock is more attractive now.

Posted by 3iii > 2018-09-01 22:24 |

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Posted by 3iii > 2018-09-01 22:28 | Report Abuse

IT IS THE AVERAGE THAT COUNTS

Peaks and troughs are part of operating and share price performance, but there is a tendency to revert to averages.

Companies with high profits are unlikely to generate that growth forever and companies with low profits are unlikely to be stuck in long-term ruts.

When valuing companies, strip out peaks and troughs and look at average long-term earnings potential – the intrinsic value or ''normalised'' profit potential.

XYZ share price was about $ 7.00 in 2007, with earnings per share (EPS) of 70 cents. However, EPS looked unsustainably high given a ''normalised'' earnings estimate of 45 cents per share.

Mean reversion worked its magic and by April 2009 earnings forecasts dropped to 12 cents per share and shares to 50 cents.

Posted by cheoky > 2018-09-01 22:30 | Report Abuse

Which stock to buy n hold now? On these critieria

Posted by 3iii > 2018-09-01 22:36 |

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Posted by 3iii > 2018-09-01 23:29 | Report Abuse

SIZE DOESN'T MATTER


It is preferable to assess investments in terms of absolute risk, looking at

- valuation risk (the risk of overpaying),
- earnings risk (the risk earnings decline over time) and
- financial risk (the risk of insolvency).

If an investment's potential returns significantly outweigh the balance of risks, it should be viewed as an attractive long-term opportunity.

Posted by 3iii > 2018-09-01 23:33 | Report Abuse

DON'T FOLLOW THE HERD

Willingness to go against the crowd is fundamental for generating superior long-term returns.

Given ongoing search for yield and the disappearance of the banks as major dividend payers in 2010, many income funds have been forced into a smaller set of high yielding stocks.

This trend has left many funds in the income sector clustered in just a handful of stocks. This is not the way to produce superior performance.

Posted by 3iii > 2018-09-01 23:40 |

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Posted by 3iii > 2018-09-01 23:45 | Report Abuse

PATIENCE IS A VIRTUE


Market sentiment can create exceptional opportunities for investors with patience.
- At times of market ''panic'', share prices fluctuate far more than underlying fundamentals of many businesses warrant.
- This creates great opportunities.



There have been many bargains over the past 18 months (November 2009 to May 2010).

Retailer QRS is a particularly good example.
- The retailer QRS saw share prices fall from $24 at the peak, to $8 at the trough.
- This reflected investors' fears about global recession, but QRS seemed a robust company with low net debt and unlikely to go bust.
- With shares seemingly trading at a low of four times normalised earnings this was a chance to acquire a quality business at a low price.
- Shares have shot back to more than $20.

Posted by 3iii > 2018-09-01 23:51 |

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Posted by 3iii > 2018-09-02 00:00 |

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Posted by 3iii > 2018-09-02 00:06 | Report Abuse

Keep your money for investing separate from those for speculating.



Strategies to Make Money in The Stock Market

One great way to grow your money is to invest into the stock market. But deciding how to invest into it can be a bit tricky. Everyone is different, but there are 5 strategies that all traders use to make money in the market.


1. Buying and Holding for the Long Term

2. Trading The Trend

3. Swing Trade

4. Options

5. Day Trading Stocks


Every strategy has its ups and downs. But it is up to the individual trader to determine which one fits them the best.

Learning the basics of each and experimenting with them can help you determine how you want to approach the market.

Posted by 3iii > 2018-09-02 08:46 | Report Abuse

Choose the game(s) you wish to play wisely.

There are three types of games to choose from:

1. Positive sum games
2. Negative sum games
3. Zero sum games.

Understand the games and know which to be in or which to avoid.




http://myinvestingnotes.blogspot.com/2008/08/games-people-play.html
WEDNESDAY, 6 AUGUST 2008
Games people play

https://myinvestingnotes.blogspot.com/2018/09/investments-and-risk-reward-ratio_2.html
Investments and Risk Reward Ratio

Posted by stockraider > 2018-09-02 11:05 | Report Abuse

The investment info given by dishonest 3iii is sound with fundamental too loh....!!

But please beware of 3iii loh, he always push high overvalue stocks with low dividend yield stock to unsuspecting investors as quality investment loh...!!

Yes those stocks are good investment when it is reasonably price loh...do not chase this type of stock loh....!!

Go & pick good stock....with similiar selection criteria...but check the pricing valuation loh....!!

Posted by stockraider > 2018-09-02 12:11 | Report Abuse

IT IS VERY SIMPLE LOH....TO TRACK DISHONEST 3iii JUST MARK THESE SHARE PRICES & REVIEW IT AT THE END OF THE YR 2018 LOH...!!

Posted by stockraider > Sep 1, 2018 02:11 PM | Report Abuse X

these are past growth stock, now saturated loh....it is overvalue loh...if u buy 10 yrs ago ....then u get good return...but if u buy now u r looking for stagnation....bcos it is overvalue now loh...!!

The correct approach is start looking for new growth stock mah...!!

Never overpay loh.....!!

Posted by 3iii > Sep 1, 2018 01:58 PM | Report Abuse

Hartalega Holdings Bhd
Market Cap share price rm 7.10
9.1.2009 0.42 b
25.8.2018 23.41 b

Press Metal Aluminium Holdings Bhd
Market Cap share price rm 4.98
09.1.2009 0.25 b
25.8.2018 18.78 b

Top Glove Corp Bhd
Market Cap share price rm 11.14
09.1.2009 1.1 b
25.8.2018 13.83 b

Hap Seng Consolidated Bhd
Market Cap share price rm 9.98
09.1.2009 1.33 b
25.8.2018 24.5 b

Public Bank Bhd
Market Cap share price rm 25.12
09.1.2009 31.33 b
25.8.2018 96.67 b

Nestle (M) Bhd
Market Cap share price rm 147.00
09.1.2009 6.39 b
25.8.2018 34.59 b

Tenaga Nasional Bhd
Market Cap share price rm 15.68
09.1.2009 27.09 b
25.8.2018 89.15 b

Fraser & Neave
Market Cap share price rm 38.00
09.1.2009 3.19 b
25.8.2018 14.02 b

Petronas Dagangan
Market Cap share price rm 27.2
09.1.2009 7.25 b
25.8.2018 26.51 b

Petronas Gas
Market Cap rm 18.70
09.1.2009 19.49 b
25.8.2018 36.6 b

I own 8 of these 10 stocks in my portfolio for many years.

Posted by 3iii > 2018-09-02 12:42 |

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Posted by stockraider > 2018-09-02 12:45 | Report Abuse

As usual 3iii being challenge by raider panic loh....!!

Why leh ??
Bcos he is dishonest loh....a conman lies will be expose this end of the year loh....!!

Posted by 3iii > Sep 2, 2018 12:42 PM | Report Abuse

>>>>stockraider IT IS VERY SIMPLE LOH....TO TRACK DISHONEST 3iii JUST MARK THESE SHARE PRICES & REVIEW IT AT THE END OF THE YR 2018 LOH...!! <<<<


Let us look at them again in 2023.


Quote:

I am buying stock and I am not buying because I think the stock is going up next year.

I am buying because I think the stock will be worth a bit more money 10 or 20 years from now.

http://myinvestingnotes.blogspot.com/2018/08/warren-buffett-says-im-bu...?m=0



An example:

I bought one of the above stocks 3 years ago. Within a few months, its market price was down 25 to 30%. Over the last 1 year, its market price continued to rise. Today, I have a total gain of 70% since 3 years ago.

Market price of growth stocks by nature can be very volatile in the short term. However in the long term the market price will reflects its intrinsic value. You are betting on its earning power to deliver increasing intrinsic value over the long term.

Be discipline. Be patient. Stay within your own circle of competence.

Posted by stockraider > 2018-09-02 12:47 | Report Abuse

REMEMBER LOH....3iii LIES WILL BE MEASURED END OF THE YR BY RAIDER AND I3 MEMBERS LOH.....!!

Posted by stockraider > Sep 2, 2018 12:11 PM | Report Abuse X

IT IS VERY SIMPLE LOH....TO TRACK DISHONEST 3iii JUST MARK THESE SHARE PRICES & REVIEW IT AT THE END OF THE YR 2018 LOH...!!

Posted by stockraider > Sep 1, 2018 02:11 PM | Report Abuse X

these are past growth stock, now saturated loh....it is overvalue loh...if u buy 10 yrs ago ....then u get good return...but if u buy now u r looking for stagnation....bcos it is overvalue now loh...!!

The correct approach is start looking for new growth stock mah...!!

Never overpay loh.....!!

Posted by 3iii > Sep 1, 2018 01:58 PM | Report Abuse

Hartalega Holdings Bhd
Market Cap share price rm 7.10
9.1.2009 0.42 b
25.8.2018 23.41 b

Press Metal Aluminium Holdings Bhd
Market Cap share price rm 4.98
09.1.2009 0.25 b
25.8.2018 18.78 b

Top Glove Corp Bhd
Market Cap share price rm 11.14
09.1.2009 1.1 b
25.8.2018 13.83 b

Hap Seng Consolidated Bhd
Market Cap share price rm 9.98
09.1.2009 1.33 b
25.8.2018 24.5 b

Public Bank Bhd
Market Cap share price rm 25.12
09.1.2009 31.33 b
25.8.2018 96.67 b

Nestle (M) Bhd
Market Cap share price rm 147.00
09.1.2009 6.39 b
25.8.2018 34.59 b

Tenaga Nasional Bhd
Market Cap share price rm 15.68
09.1.2009 27.09 b
25.8.2018 89.15 b

Fraser & Neave
Market Cap share price rm 38.00
09.1.2009 3.19 b
25.8.2018 14.02 b

Petronas Dagangan
Market Cap share price rm 27.2
09.1.2009 7.25 b
25.8.2018 26.51 b

Petronas Gas
Market Cap rm 18.70
09.1.2009 19.49 b
25.8.2018 36.6 b

I own 8 of these 10 stocks in my portfolio for many years.

Posted by 3iii > 2018-09-02 15:19 |

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Posted by 3iii > 2018-09-02 15:36 | Report Abuse

There are 5 strategies that all traders use to make money in the market.


1. Buying and Holding for the Long Term

- Everybody knows what buy and hold is. In fact the vast majority of market participants buy stocks and hold onto them for the long term. -
- And it does make sense, stocks do go up over the long term, so buying and holding can be a passive way to grow your money.

Posted by 3iii > 2018-09-02 15:39 | Report Abuse

There are 5 strategies that all traders use to make money in the market.


2. Trading The Trend

- One other strategy is called trend trading. It involves buying stocks that are going up and selling stocks that are not going up.
- While it might sound like it was invented by a 5 year old it really can work if you get the hang of it.
- Sometime the simplest answer is the best.

Posted by 3iii > 2018-09-02 15:41 |

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Posted by 3iii > 2018-09-02 15:43 |

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Posted by 3iii > 2018-09-02 15:44 | Report Abuse

There are 5 strategies that all traders use to make money in the market.

5. Day Trading Stocks

- Day trading is exactly what the name suggests. You buy and sell stock within one day in order to make money on the small moves that occur throughout the day.
- Day traders are not always profitable, but over the long term it can be a great way to make money.

Posted by UnicornP > 2018-09-02 15:46 | Report Abuse

https://klse.i3investor.com/blogs/koonyewyinblog/74942.jsp

Posted by 3iii > 2018-09-02 15:46 | Report Abuse

There is ALWAYS a Speculative Component of Stock Investment. There is no sure thing.



There is no sure thing. There is always risk in stock market investing.


Risks are inherent in buying stocks and the investors should have a clear idea of these risks when buying.


These risks are inseparable from the opportunities of profit that they offer. Both of these must be allowed for in the investor's calcuations.


Investors should be aware of this speculative component of investing. This should be distinguished from stock speculation.


It is the investor's task to keep this speculative component of investing within minor limits and to be prepared financially and psychologically for adverse results that may be of short or long durations. There is no way around this market effect.

Posted by UnicornP > 2018-09-02 15:51 | Report Abuse

3iii let me ask you.
Why do people went bust in stock market during financial crisis?

Posted by 3iii > 2018-09-02 15:52 | Report Abuse

Speculative Component of Stock Investment vs Stock Speculation


There is always a speculative component of investing when you buy and hold.


However, this speculative component of investing should be distinguished from stock speculation.


Benjamin Graham, in his texbook, Security Analysis, attempted a precise formulation to distinguish the difference between investment and speculation.

"An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."




This is what he wrote on speculation.
- Some speculation is necessary and unavoidable, for in many common stock situations, there are substantial possibilities for both profit and loss, and the risks therein must be assumed by someone.

- There is intelligent speculation as there is intelligent investing.

- There are also many ways in which speculation may be unintelligent:
(a) speculating when you think you are investing;
(b) speculating seriously instead of as a pastime, when you lack proper knowledge and skill for it; and
(c) risking more money in speculation than you can afford to lose.

- Every nonprofessional who operates on margin (investing with money borrowed from your broker with your shares as collateral) should recognize that he is ipso facto speculating.

- And everyone who buys a so-called "hot" stock is either speculating or gambling.




Benjamin Graham recognised that speculation can be a lot of fun while you are ahead of the game.
- He advised those who want to try their luck at it, to put aside a portion -- the smaller the better -- of your money in a separate fund for this purpose.
- Never add more money to this account just because the market has gone up and profits are rolling. (That's the time to think of taking money out of your speculative fund.)
- Never mingle your speculative and investment operations in the same account, nor in any part of your thinking.

Posted by 3iii > 2018-09-02 15:56 | Report Abuse

>>> Posted by UnicornP > Sep 2, 2018 03:51 PM | Report Abuse

3iii let me ask you.
Why do people went bust in stock market during financial crisis?<<<


They did not know what they were doing.

They took on board too much risk, did not protect their downsides in the event they were wrong.

They bought stocks which they thought to be good when in fact they were lousy stocks.

They overpaid to own these stocks, perhaps in a period of market euphoria.

They took on margins.

They used money for investing in the market which they need to withdraw in a short period, and the market was just not favourable at the time for this compulsory withdrawal from the market.


P/S: I am sure there are many more scenarios.

Posted by 3iii > 2018-09-02 16:00 | Report Abuse

Be careful when playing momentum – the trend may appear to be your friend, but can quickly turn into a foe

Momentum – The trend is not always your friend


Have you ever thought why most stock tips you receive are about buying a stock that has done well recently, a recent winner?

Are your brokers and friends great stock pickers who pick stocks that do well, or is it just momentum – picking stocks AFTER they have done well – at work?

With no offense to anybody’s skills, it’s probably the latter.

Posted by UnicornP > 2018-09-02 16:01 | Report Abuse

Wahsai... 3iii you're damn good.
The main main reasons are only two..
1) They hold rubbish stocks.
2) They take margins.

What sectors in stock market you're best at 3iii?
Tech? Core industrial like rubber/steel/O&G? Construction? Consumers? Services?

Posted by 3iii > 2018-09-02 16:05 |

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Posted by 3iii > 2018-09-02 16:11 | Report Abuse

Momentum is a favourite market strategy.


Momentum is one of the best performing strategies over the last 15 years.

The most basic indicators have made for very favourable trading strategies.

What makes it even more popular is that momentum is one of the easiest things to do – it takes very little to get the past prices of stocks and figure out which ones are doing well.

You don’t need to know anything about the stock or the business to trade momentum – you could be following the price of bananas for all it matters.




Moreover, for a broker or an individual, momentum is a professional and socially safe strategy.
- You’re always following the trend, always selling what is doing well, and that’s a pretty easy sale to make.
- You always sound right, and who doesn’t like that?




Compare this to value investing – after all the work involved in understanding a company’s inherent value and financials, you are the one rooting for an undervalued firm whose stock price has been beaten down.
- Even tougher, you’re running down a company that has done well because it is overvalued, even though everyone else loves it.
- It’s a pretty unpopular place to be in and a tough sale to make to a client.

Posted by 3iii > 2018-09-02 16:13 | Report Abuse

Momentum is a favourite market strategy.


Unfortunately, for all its ease and apparent money making abilities, momentum can revert pretty quickly, and when it does, it gets ugly.

No trend sustains itself forever, definitely not in the short to medium term, and when a trend reverts, it is painful being a momentum trader.

Think of 2007. For the three year bull run, markets were doing well, and every trader was bullish – momentum did well and every investor felt they had discovered a gold mine…until 2008 struck.

The upward trend reverted, the market crashed and momentum crashed with it, and quickly.

Momentum traders saw gains made over three years quickly erode as markets took a turn.

Posted by UnicornP > 2018-09-02 16:15 | Report Abuse

As you know you cannot be a doctor, a lawyer, a teacher, a policeman, a plumber or an accountant at the same time, it is the same in the stock market. You cannot be a pro in tech, a pro in construction or industrial or consumers or plantations at the same time.

Posted by UnicornP > 2018-09-02 16:16 | Report Abuse

The very first step to play in stock market is to identify the sector you're most familiar with.

Posted by 3iii > 2018-09-02 16:18 |

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Posted by 3iii > 2018-09-02 16:23 |

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