16-10-2013, 08:37 PM
(16-10-2013, 07:31 PM)Dividend Hermit Wrote: Got the SGS at a slight discount and coupon rate quite okay (3.375%).
Another reason I sold my stocks is because I bought them at a high price (newbie mistake as I chase the tail). Now got chance to sell so I intend to re-enter at a much lower price in future.
I would ask you to reconsider although this is but my humble opinion.
In fact, would suggest you buy them all the stocks back and then some. 3.375% looks like a 30 year bond. Even if it is a 10 year bond, the average CAGR of stocks is about 8% over the long term which is double of that.
I believe prices of stocks now by most metrics are about average. You might even find some selling at prices slightly below average and might be able to get some clues generously left in this forum. Anyway, since you are paying an average price, you should expect to get an average return. i.e. 8% CAGR.
But yes. This is just my opinion because I am not very good at buying at highs or lows and I am more than satisfied with average returns over the long run.