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23-05-2013, 04:46 PM
(23-05-2013, 04:35 PM)Greenrookie Wrote:(23-05-2013, 04:19 PM)evolance Wrote:(23-05-2013, 03:49 PM)Greenrookie Wrote: Actually, I have been waiting for this sales for a long time... but its not sales time yet in my opinion... Many have run up too high, but I am reallly drooling at LKH ...
No offence, value investors are not afraid of crash, think most forummers are looking forward to it, think only with multiple crashes or whammies will value investors get shaken
Newbie Qn, dun think I am ever a true value investor, but would like to understand what is perception of a true value investor invest though...
Say Value Investor A bought ABC Stock at $0.70, abt 30% margin of safety.
ABC stock performed better than expected and price rose to $1.50 abt X years and intrinsic value rose $1.10 from $1.
Then something simliar to today happened, share price dropped drastically, and the value investor have some savings.
1. He sell his existing share to realise some profit in anticipations that the share will drop to some margin of safety.
2. He wait for the share price to drop til his margin of safety $0.70-$0.80 (forgoing the current profit from current holdings) and enter his addition savings
If he chose 1, is he still consider Value Investor?
Hehe...
I would properly have choose 1... I "fake" investor, don't even dare to use "value"... If I value ABC at $1 and I buy at 0.7, I will sell at 1.1, if
1) I still value it at $1 (risk - reward profile no good)
2) If there is better opportunties...
I will only hold ABC if it pays good dividends and yield and TINA, and I am very confident of its longer terms prospect, then I will go for 2).. nonetheless, if ABC goes fr 0.7 to 1.5, i would have reduce some holdings of it along the way from $1 upwards
Just my 2 cents
i have sold Wing Tai @ $2.27 a week or more ago. i still have SGX and Singtel. Even if i chicken out and sold now , they are still quite profitable.
If i have to keep them, it's O. K. Because i can live with it because of the YOC and the bank's IR is sucking eggs. But i intend to sell them if Market still intact for a bit longer. i think the market will linger on for a while. My 2 cents.
WB:-
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.
1) Rule # 1, do not lose money.
2) Rule # 2, refer to # 1.
3) Not until you can manage your emotions, you can manage your money.
Truism of Investments.
A) Buying a security is buying RISK not Return
B) You can control RISK (to a certain level, hopefully only.) But definitely not the outcome of the Return.
NB:-
My signature is meant for psychoing myself. No offence to anyone. i am trying not to lose money unnecessary anymore.