Starting an investment company in SG

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#11
(20-11-2010, 10:56 AM)Musicwhiz Wrote:
(19-11-2010, 07:26 PM)Zelphon Wrote: When should be we sell all equities and stay 100% cash ?

This is a pretty personal choice, I would say. As long as you feel the growth story is intact for the company in which you hold shares, you are obliged to continue holding it and following the story (i.e. Lynch's method). On the other hand, you could employ Graham's method to compute if a company is overvalued based on quantitative metrics, to determine an objective selling point. Yet others may want to use a Buffett/Munger approach and employ a multi-disciplinary framework of qualitative and quantitative factors to estimate intrinsic value; and to sell if the share price exceeds this intrinsic value by X%.

So to sum up, there is no one "right" method. It depends on one's comfort level and assessment of valuation/prospects.

I think before you use all these methods of selling, do you know what is your investment goals and purpose? Why are you investing? ( don't say to make money, pls!) If you understand the goal and purpose, then a lot of the decisions to sell , buy , hold, etc...etc... would be more clear to you.

There are many many methods, and everyone sells for different reasons, some for no reason and some because, everyone is doing it so I am doing it also etc..

Its your money, so make sure you are selling or buying with a clear underlying reason.

A lot of factors to consider, from time-span, trading or investment? diversify? why? all in one stock? why? etc...etc...etc...

If you don't know why you are doing and you are looking at other people to tell you why, that means you don't know what you are doing. That's a very risky situation.

Just my humble view not that it is correct. Tongue
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