ValueBuddies.com : Value Investing Forum - Singapore, Hong Kong, U.S.

(06-04-2013, 03:19 PM)paullow Wrote: [ -> ]

(06-04-2013, 03:10 PM)Musicwhiz Wrote: [ -> ]

(06-04-2013, 03:01 PM)TheMillennium Wrote: [ -> ]how do u gauge what is a "good" %? is it all on personal aims/goals? or is there a rough number which i can try to aim for?

Thanks!

The long-term return for investing is equities is between 7% to 9%, of which 2% to 3% is from capital gains and 5% to 6% is from dividends. So if you factor this into account, 10% seems fair; but you have to weigh the risk and return. Also, do you understand the business and its drivers? Is the time spent worth the effort compared to your expected return?

i think that is a fair answer. but if one spent a great deal of time n resource on a few stocks, then perhaps 10% isa low figure.

(06-04-2013, 07:00 PM)byfaith Wrote: [ -> ]Paullow

thanks for the quick reply and the others for your contribution.

Most educators out there advocate having a cut loss limit as well as profit taking limit. That means, if the counter jump by x % profit, then you must take profit.


for me, the time i purchase a stock, some 3-6months of intensive work have already gone in.

I am not interested or bothered by market up and down. a up or down of say 20% or more doesn't really affect me. i don't have a cut loss. I buy into companies which i think will be highly unlikely to go bust.

Koh Boon Hwee is a good example. He just stays put. His average purchase price may be 30-40c and his 5m shares might have cost him 1.5-2m. Means he's still sitting on perhaps 30% of losses. do u think he's losing sleep over this?


my end point will be a price when i think the upside is limited and the downwards risk becomes disportionately large.



I did that on my own counters willingly and only to realise some have gone even higher, like chip eng seng, ttj and jb foods.


to me, market forces are beyond my control, if some hedge funds or punting force decides to push a stock beyond what i think its fundamentals would support, i will just let go of my positions.



Your perspective of evaluating a stock like a business is very refreshing indeed. I now wonder what is Peter Lim investment of 15m in Wilmar ? Does he see more or know more than the average investor?

That i think i leave it to you to google his rare interview.



I mean is your trading strategy like take some profits then wait for it to trend down, re-enter , ride through then take profit, repeat OR
like Warren Buffett - ride through the ups and down - almost never sell the counters.

anything goes if the price is right. but i prefer counters with dividends.



If that is the case, then it is paper profits that we are talking about ,right ? When will the day you intend to cash out ?


paper gains or paper losses are only in paper. do not lose sleep over this. but if one is too bothered by it such that it affects his sleep then it's time to rethink his investment and perhaps bonds or FD may be better.

but make sure u don't jam up ur cash flow. in recession when it comes, cash is still king.


I know there is no one fixed method but I am curious to know what goes on your mind................

thanks

(18-04-2013, 09:07 AM)paullow Wrote: [ -> ]yeo hiap seng also got family dispute and in end ng teng fong had to settle it.
its in todays straits times.
interesting....more high court hearing to come

(18-04-2013, 09:12 AM)Ben Wrote: [ -> ]Ah YHS...I was working there when the saga happens, quite a sad case to see the YEOs been acquired by the NGs. As for Hupsteel, maybe with this fighting, its real value can be realised sooner?