I had an interesting conversation with a reader of The College Investor a few weeks back and I wanted to highlight an important aspect of investing that may be missed: laziness. The dialogue started with the reader asking me if I thought it was okay to speculate with my portfolio. My answer: no! In fact, I […]
Walter Schloss, a well-known super investor, advises that a holding period should range between four to five years as depressed stocks can take time to turn around.
The long term investing outlook is always bullish. Continue to buy quality stocks at good prices.
A speculator bets on stocks and an investors buys quality for the long term. Be an investor, not a speculator.
It is a common mistake to make short term profits from such predictions. But ultimately it leads to speculations and losses due to frequent buying and selling.
Never lose patience when investing. Keep your emotions at bay and stick with your investment plan for the long haul.
Do not be a pessimist on global growth because of short-term worries. Keep a positive out look when investing for the long term.
The buy-and-hold approach is an investment strategy in which stocks are bought and then held for a long period, regardless of the market’s fluctuations. The strategy rests upon the assumption that in the long run stock prices go up. The buy and hold approach minimizes costs and allows the investor to participate in the long-term […]
Passive investing is a buy and hold investment strategy. If you are a long-term investor, your main aim is capital appreciation and limited maintenance. Do limited buying and selling of securities. You shouldn’t be bothered with the daily price fluctuations in the market. Passive investing needs a lot of patience. If you want to learn […]
Sentiment can change overnight with an unexpected event or news, but not the ground realities. The market may react sharply and share price may move in either direction. Don’t buy or sell during this period. Let the market cool. If you want to learn more check out these resources: How Your Personality Type Dictates Your […]
Gambling depends on pure luck. Your luck works for you. When investing, you don’t put money on luck. You put your money in well researched investment products where your money can grow. Investments are generally for longer term, for larger needs and future demands. If you want to learn more check out the following resources: Investing […]
Inflation erodes your wealth. This can be overcome by investing in blue chip companies and high quality equity mutual funds for the long term. Keep your investments simple to monitor risks involved. If you want to learn more check out these resources: How to Protect Against Inflation Eating Up Your Investments Investors Beware: Protect Your […]
The businesses of commodity companies such as cement and steel are simple to replicate. No company can make significantly higher returns than its peers. Compare its market capitalization with the replacement capital cost for plants with matching capacity and buy as and when available with adequate margin of safety. If you want to learn more […]
Don’t leave the ground. Build up your courage and stay. Rather, continue investing in a bear market. During the bearish phase of the market, invest in good quality companies for the long term. You can make the most of your money in the future. Historically, periods of low returns have been followed by periods of […]
Sometimes your portfolio may pass through periods of under-performance compared to the overall market. It happens with great investors too! Practice patience. If you want to learn more check out these resources: Why You Need Patience for Personal Finance Warren Buffett’s Top Five Tips for investors
Past events show that the market encounters crises, such as the bursting of the technology and telecom bubble in 2000’s and 9/11. These crises create fear and uncertainty but only for a short period. The market crashes but recovers and continues to move on. The long term trend has remained upward. The market has grown […]