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Value Investing, a Trading Strategy?
12-10-2017, 10:13 PM,
Post: #21
RE: Value Investing, a Trading Strategy?

Nice summary, covers lot's of points mentioned in this thread. Note that Value Investing being a "trading" strategy, was also brought up as well.

I'll put the original link here in case anyone wants to read more on the topic:

It's a good read.

Interesting point raised too:

With value stocks, there is no growth in the company. The dividends you get, if they are reinvested in the same company will give a lesser yield if the price goes up and the long-term return will go down. So you have to keep looking out for new opportunities.

With a growth stock, there is no reinvestment risk. And the chance of dividend growth is also higher, which increases your return. And you do not need to trade often. You will profit because the intrinsic value of the company will continue to grow with time. And if you can find a number of these good companies, then you just need to buy and hold them for ever.

So, buying growth stocks is better because:

You need to make fewer decisions and fewer trades.
Time is your friend. You just need to stick with it for the long run.
Sometimes, a single big idea may make your day. This is possible only with growth stocks and not with value stocks.
You have a better chance of earning double-digit annual returns.

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12-10-2017, 10:30 PM,
Post: #22
Rainbow  RE: Value Investing, a Trading Strategy?

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12-10-2017, 10:54 PM,
Post: #23
Rainbow  I prefers growth stocks
Yes, exactly the reason cited in your post.

I realised that recently and took a drastic decision to trim 15 value stocks,
(except BWL which is disposed due to direct selling biz in China)
and switch to 5 growth stocks.

The funny things about these growth stocks,
    *funny because I had yet internalised*

The funny things about these growth stocks 
is they are all of different shape and size.

Erh, what I meant is different sector, 
different industry,
different growth theory/potential,
different management style,
different dividend strategy.

So, different that I could not even believed myself.

Why don't I just buy one of them?

I attempt to answer my questions and 
it's not because of diversification.

it's because they are like my five fingers.

I looked at them and I really love them a lot.

The most versatile one which is MM.
This one, I can tell you...

It's love at first sight.
[Image: uc?export=view&id=0B_rJrOUj766BdmlaWnFEekp2TGs]
credits: Contrarian value of investnotes

(Sorry, I could not find the link in investnotes and can not quote the link.)

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