Monday, 4 October 2021
Quote for the day
"Individual who cannot master their emotions are ill-suited to profit from the investment process." - Benjamin Graham
Sunday, 3 October 2021
20 Ways To Decide It's Time To Sell
Bolton, Lynch, Woodford, Buffett and Graham tell you when to sell.
I'm considering what tips they'd give you for when to sell. Some of the advice is a little contradictory, but the common theme is to step back from what everyone else is doing, so that you can make your own mind up.
Anthony Bolton might advise:
* Don't sell when the market looks at its absolute worst, because that will probably be the bottom.
I'm considering what tips they'd give you for when to sell. Some of the advice is a little contradictory, but the common theme is to step back from what everyone else is doing, so that you can make your own mind up.
Anthony Bolton might advise:
* Don't sell when the market looks at its absolute worst, because that will probably be the bottom.
* Ride out volatility, don't dip in and out of the market. It's too difficult to call.
* When the market's booming, the share price of your investment has followed and commentary is focused completely on the positive aspects of the company, you need to be at your most wary.
* Above all, sell when you see that the share is fully valued.
Peter Lynch would say:
* Don't sell because the economy looks bad. Always stay invested, because your profits do not depend on the economy as a whole.
Peter Lynch would say:
* Don't sell because the economy looks bad. Always stay invested, because your profits do not depend on the economy as a whole.
* Sell your steadier holdings when their PEGs reach about 1.2 to 1.4 or when the long-term growth rate starts to slow.
* Sell fast growers when there appears to be no further scope for expansion or when expansion starts to produce disappointing sales and profits growth, or when the PEGs reach about 1.5 to 2.0.
* Sell asset plays when they are taken over, or when assets that are sold off fetch lower-than-expected prices.
Neil Woodford might recommend:
* You shouldn't try to make too many course changes. It's cheaper to hold shares for five or six years, on average...
Neil Woodford might recommend:
* You shouldn't try to make too many course changes. It's cheaper to hold shares for five or six years, on average...
* ...I said 'on average'. Don't ignore poor performers. Identify them and deal with them accordingly.
* Sell when the stock, which you bought because it was out of favour, becomes the darling of the market once more.
* In troubled economic times, stick with the companies that are financially sound. The market goes through periods where it believes in economic recovery and anticipates that by bidding up cyclical shares at the expense of defensive stocks. Don't be led by the market.
Warren Buffet would quip:
* The ideal holding period for a stock is forever. That doesn't happen very often in practice, but many good businesses stay fair value for ages, so you can hold for a considerable time.
Warren Buffet would quip:
* The ideal holding period for a stock is forever. That doesn't happen very often in practice, but many good businesses stay fair value for ages, so you can hold for a considerable time.
* Consider selling when everyone is being greedy, not when they're fearful.
* Don't try to predict the direction of the stock market, the economy, interest rates or elections. It just distracts you from buying and holding good companies.
* Just because the crowd is selling it doesn't mean you should. You should sell when your data and reasoning say so.
Benjamin Graham might suggest:
* Don't be dictated to by Mr. Market. Sell when your holdings become way overvalued.
Benjamin Graham might suggest:
* Don't be dictated to by Mr. Market. Sell when your holdings become way overvalued.
* Consider selling shares you've held more than two years, shares that have risen more than 50%, shares where dividends have been stopped, and shares where profits have dropped enough to make it over-priced by 50% based on earnings yield.
* Don't panic and sell shares as prices slide in a bear market -- consider buying more.
* If you're confident about what you're doing, you should hardly ever be forced to sell, nor should you care about the current price. You should act upon it just to the extent that it suits you.
By Neil Faulkner
By Neil Faulkner
www.fool.co.uk
Saturday, 2 October 2021
Do You Have The Top 3 Qualities of a Successful Investor?
Do you have what it takes to be a successful investor? Here are the three must have attributes of a successful investor, patience, optimism, and education. Without these three attributes you are doomed to failure.
1. Patience
In the short-term stock prices go up and down. In the long-term stocks prices rise and dividends increase. Recessions come and go, nothing lasts forever. We may have a small downturn in the economy that last a few months to a recession that could last a year or two. As an investor you must have the patience to ride out the downturn You must have the patience to stay invested even when the media is telling you to sell. Selling when prices are low is exactly the wrong time to sell; this only solidifies your losses. Have the patience to ride out any dips, and be prepared to reap the rewards when stock prices go up.
2. OptimismA successful investor is an optimistic investor. You must believe and have faith that the world is getting better, and that the economy will improve. Otherwise there is no point in investing if you think the world is headed for a recession, depression, or just plain down the toilet. If you believe that things will continue to get worse then you are just better off keeping your money under your mattress. Believe that things will get better, be optimistic about the future, and invest for yourself by yourself. How do I know things will improve? I can't tell the future, but I do know that the economy has survived recessions, depressions, wars, natural disasters, the tech bubble, the credit crisis, national debt, and oil crises in the past. After each disaster the world has continued to move along, the economy has continued to grow. Be optimistic that the economy will continue to flourish in the long-term, and you too will flourish along with it.
3. EducationA successful investor is an educated investor. No one cares more about your money than you do, so you owe it to yourself to learn how to invest responsibility. Learn how to minimize your risk and learn how to maximize your returns. Without investing knowledge you are just guessing and speculating, you might be better off buying a lottery ticket. It's easy to sit back and not do anything, easy to relax and let the "experts" handle your money. But a life of ease will actually make you lose money in fees, and lost opportunity. Learning how to invest is not difficult, it just requires you to take the first step and begin your journey towards success.
Article Source: http://EzineArticles.com
1. Patience
In the short-term stock prices go up and down. In the long-term stocks prices rise and dividends increase. Recessions come and go, nothing lasts forever. We may have a small downturn in the economy that last a few months to a recession that could last a year or two. As an investor you must have the patience to ride out the downturn You must have the patience to stay invested even when the media is telling you to sell. Selling when prices are low is exactly the wrong time to sell; this only solidifies your losses. Have the patience to ride out any dips, and be prepared to reap the rewards when stock prices go up.
2. OptimismA successful investor is an optimistic investor. You must believe and have faith that the world is getting better, and that the economy will improve. Otherwise there is no point in investing if you think the world is headed for a recession, depression, or just plain down the toilet. If you believe that things will continue to get worse then you are just better off keeping your money under your mattress. Believe that things will get better, be optimistic about the future, and invest for yourself by yourself. How do I know things will improve? I can't tell the future, but I do know that the economy has survived recessions, depressions, wars, natural disasters, the tech bubble, the credit crisis, national debt, and oil crises in the past. After each disaster the world has continued to move along, the economy has continued to grow. Be optimistic that the economy will continue to flourish in the long-term, and you too will flourish along with it.
3. EducationA successful investor is an educated investor. No one cares more about your money than you do, so you owe it to yourself to learn how to invest responsibility. Learn how to minimize your risk and learn how to maximize your returns. Without investing knowledge you are just guessing and speculating, you might be better off buying a lottery ticket. It's easy to sit back and not do anything, easy to relax and let the "experts" handle your money. But a life of ease will actually make you lose money in fees, and lost opportunity. Learning how to invest is not difficult, it just requires you to take the first step and begin your journey towards success.
Article Source: http://EzineArticles.com
Quote for the day
"You have to take risks. We will only understand the miracle of life fully when we allow the unexpected to happen." - Paulo Coelho
Friday, 1 October 2021
Quote for the day
"Do you want to have an easy life? Then always stay with the herd and lose yourself in the herd." - Friedrich Nietzsche
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