Is the Buy & Hold Stock Strategy Officially Dead?

Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
#5
(26-06-2012, 10:58 AM)KopiKat Wrote:
(26-06-2012, 10:32 AM)paullow Wrote: It should be buy n hold forever for some stocks at cheap entry points, esp if one has bot singtel at $2, ocbc at $4 etc. Future troughs will not likely see such levels again.

In my case, the entry price doesn't affect my decision on whether to hold forever. For eg., I did ever buy Singtel at below $2. IIRC, after 911, it dropped to a low of $1.20? But once it recovered from it's lows, and after a few years of real growth in Revenue and more importantly in Net Profit from their various acquicitions, it seems to have stagnated for the past few years. This is also supported by their increasing dividend payout ie. that little growth they'd been enjoying is no more there and they seem to be running out of ideas (for growth), so better to pay out spare cash as div.

In such a case, why hang on to Singtel? From omy observation, share price had fluctuated around the $3 level ie. cd - will likely strengthen and even hit $3.3x or $3.4x. xd - more likely will be closer to $3 or even below.

So, unless there's a new growth catalyst or their Dividend Yield is sufficiently attractive enough, I don't see any strong reasons to continue holding on to Singtel, just because of the low entry price (except for the bragging rights). Not especially if you can find better alternatives for your free cash.

I agreed with the approach.

I bought Singtel twice at low. Once at acquisition of Optus (as low as $1.5), and another around 2008-2009 (average ~$2.7)

The last sell is @ $3.3 in 2010, to allow me to divert the fund to better alternative in the same industrial.
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
Reply


Messages In This Thread
RE: Is the Buy & Hold Stock Strategy Officially Dead? - by CityFarmer - 26-06-2012, 11:48 AM

Forum Jump:


Users browsing this thread: 1 Guest(s)