B
brains
Guest
Target of $8 in 3-4 months.
Buying Low Priced Shares
- Thread starter Bill.L
- Start date
Hi all,
I think I hijacked this thread into what AMP is doing rather than the original concept that I was trying to get across. That being the fallacy of buying assets that are DECREASING in value.
I could have used Telstra or News Corp or BHP or Southcorp or a host of other companies that have been making new 52 week lows over the last few months.
The point being that investors should be looking at assets that are APPRECIATING in value. Have a in the new highs/new lows section of the financial press. You notice that over a period of a couple of weeks or months the companies that are in the new highs section tend to be the same companies, the same can be said about those in the new lows section.
It occurs to me that many on this forum who are canny and savvy property investors, by buying in growth areas that were rising and continue to do so, would think the opposite strategy should work in the stockmarket.
Who on this forum would buy in Magoo West where the price of a 3 br house is $100,000 now, but was $120,000 last year, $140,000 the year before, and $160,000 the year before that( the yield is also declining). Some may say that it's a good time to buy as prices can't go down much more but they probably thought that last year and the year before as well.
In comparison to others on this thread and another thread where not losing as much as the asx200 seems to be a good thing, my shares were at new 52 week highs when I purchased about a month ago. They were at new 52 week highs when this thread was started, and since then have continued. They are showing a 40% rise on my purchase price and nearly 20% in the last week and a half.
Isn't it better to jump aboard the moving train, rather than stand in front of it telling it to go the other way???
bye
happy investing
I think I hijacked this thread into what AMP is doing rather than the original concept that I was trying to get across. That being the fallacy of buying assets that are DECREASING in value.
I could have used Telstra or News Corp or BHP or Southcorp or a host of other companies that have been making new 52 week lows over the last few months.
The point being that investors should be looking at assets that are APPRECIATING in value. Have a in the new highs/new lows section of the financial press. You notice that over a period of a couple of weeks or months the companies that are in the new highs section tend to be the same companies, the same can be said about those in the new lows section.
It occurs to me that many on this forum who are canny and savvy property investors, by buying in growth areas that were rising and continue to do so, would think the opposite strategy should work in the stockmarket.
Who on this forum would buy in Magoo West where the price of a 3 br house is $100,000 now, but was $120,000 last year, $140,000 the year before, and $160,000 the year before that( the yield is also declining). Some may say that it's a good time to buy as prices can't go down much more but they probably thought that last year and the year before as well.
In comparison to others on this thread and another thread where not losing as much as the asx200 seems to be a good thing, my shares were at new 52 week highs when I purchased about a month ago. They were at new 52 week highs when this thread was started, and since then have continued. They are showing a 40% rise on my purchase price and nearly 20% in the last week and a half.
Isn't it better to jump aboard the moving train, rather than stand in front of it telling it to go the other way???
bye
happy investing
B
brains
Guest
Good on you Bill,
Its always good to see a successful trade.
But sometimes its like talking to people who like to play the pokies. You only ever hear about the wins, rarely the losses.
Its always good to see a successful trade.
But sometimes its like talking to people who like to play the pokies. You only ever hear about the wins, rarely the losses.
Last edited by a moderator:
Brains,
You obviously miss my point, this is not meant to be a p###ing competition. It's about a style of investing.
I've been doing this for over 20 years and it took a long time and a lot of losses to finally get the big picture. Investing for cap gain is simple, not easy. You buy what is going up, not down. You sell what is going down, not up.
The market is a great teacher of bad habits. On many occassions it will reward bad trading and re-inforce the habit. Then when you least expect it the opposite happens and you lose big. So go ahead buy shares that go to new lows, ignore your stoploss, continue to gain confidence in your trading style.
I apologise for my last post gloating, it was not aimed at AMP shareholders, just at those who give their money(and pay for) to someone else who employs a strategy of gaining more of losers and getting rid of winners.
You obviously miss my point, this is not meant to be a p###ing competition. It's about a style of investing.
I've been doing this for over 20 years and it took a long time and a lot of losses to finally get the big picture. Investing for cap gain is simple, not easy. You buy what is going up, not down. You sell what is going down, not up.
The market is a great teacher of bad habits. On many occassions it will reward bad trading and re-inforce the habit. Then when you least expect it the opposite happens and you lose big. So go ahead buy shares that go to new lows, ignore your stoploss, continue to gain confidence in your trading style.
I apologise for my last post gloating, it was not aimed at AMP shareholders, just at those who give their money(and pay for) to someone else who employs a strategy of gaining more of losers and getting rid of winners.
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