Oh dear, such poor advice.
I feel so sorry for all those misguided people who have bought and held quality companies for the long term.
JB Global - 100% LVR, 100% capital protected, ASX 200 fund, 4.5% interest
- Thread starter DavidMc
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Oh dear, such poor advice.
I feel so sorry for all those misguided people who have bought and held quality companies for the long term.
Hi Sunfish,
No it was not, but Woolworths was listed,until it was taken over by Adsteam, who went broke, and was sold by the receivers back to the public for new money.
My point was, that here is a 'good' company that if you had owned it for the long term, by buying 25 years ago, you would have exactly nothing now, unless you had re-bought it in the early '90's.
You're right though, HIH was considered a 'good' share to own, so was Pasminco, Ansett, Pacific Dunlop, plus things like Fosters before IXL bought it for scrip.
Hoffy, I'm glad you feel sorry for all those people.
bye
No it was not, but Woolworths was listed,until it was taken over by Adsteam, who went broke, and was sold by the receivers back to the public for new money.
My point was, that here is a 'good' company that if you had owned it for the long term, by buying 25 years ago, you would have exactly nothing now, unless you had re-bought it in the early '90's.
You're right though, HIH was considered a 'good' share to own, so was Pasminco, Ansett, Pacific Dunlop, plus things like Fosters before IXL bought it for scrip.
Hoffy, I'm glad you feel sorry for all those people.
bye
Oh dear, such poor advice.
I feel so sorry for all those misguided people who have bought and held quality companies for the long term.
I dont understand this comment.
If you stated buying and holding shares in companies for the long term then i would agree with you.
But if you are talking about quality companies then i strongly disgree.
This is a mistake so many amuture investors make.
They buy shares in a company with little or no barriers to entry, because that company has a 'good story' at the time, then they just naively hold it.
The secret to buy and hold is:
1) make sure you are truely buying a company worthy of a buy and hold strategy (the population of suitable stocks is a small fraction of total stocks listed).
2) make sure your 'buy in price' is reasonable
3) most important: make sure the strategic fundamentals of the company are not changing. This involes in the words of Cramer: buy and homework
The truth when it comes to investing is that there are no definative right and wrong pathways. However there are strategies that will maximise your probabilties of achieving satisfactory returns over the longterm whilst minimising your downside.
Most importantly in my opinion is to learn an investment style and try to become as proficient in it as possible rather than be a jack of all trades or even worse, switch your investment philosophy to suit the latest investment fads (which is what most amuture investors do).
For example i could never invest like Sunfish, i dont have the skill set to invest like he does. At the moment resource stocks are the place to be again. That does not mean that Sunfish is right and i am wrong, or his investment philosphy is better or worse than my own. We both have our own investment style and there will be times in the investment cycle where one strategy will out perform the other. But by becoming as proficient as possible in a particular investment style you can minimise the chance of permanent capital loss when the cycle is not in your favour.
Hi Sunfish,
No it was not, but Woolworths was listed,until it was taken over by Adsteam, who went broke, and was sold by the receivers back to the public for new money.
My point was, that here is a 'good' company that if you had owned it for the long term, by buying 25 years ago, you would have exactly nothing now, unless you had re-bought it in the early '90's.
You're right though, HIH was considered a 'good' share to own, so was Pasminco, Ansett, Pacific Dunlop, plus things like Fosters before IXL bought it for scrip.
Hoffy, I'm glad you feel sorry for all those people.
bye
Gee, what would the chances be of only holding these ones and no good ones
How about I roll off a list of 10 or 20 good ones for each of those duds? What would that prove? Only marginally more than your pointless list.
Gee, what would the chances be of only holding these ones and no good ones
For you'n'me? LOW. Although I have been known to be heavily overweight a particular stock so there is no way I could, "Cross my heart, hope to die" say that it could not happen to me. There have been many thousands (hundreds?) of trusting, hard working folk who have suffered life changing losses when "conservative" investments go bad.
But if you think about it: Nobody is less diversified than a "full on" residential property investor.
Just wondering how is it all working out..willair..
Remembered this thread as I had contemplated the fund, it seems to be at $0.9777 at 2 May 2011
JB Performance link
And how much has JB made?
Or target the Banks if they start to drop in value,most are above 7% plus franking..
