Buy & Hold

Re: Buy & Monitor

Postby Poles » Fri Oct 29, 2010 2:51 pm

dun care white/black.....i got make marn$$$ ...is good campany...
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Re: Buy & Monitor

Postby kennynah » Sat Oct 30, 2010 4:15 am

juicy annie kong

who cares...this operations, that deal... high productivity...middle east connection, russian buy-in...etc...

if price cannot rise....i wont care if this is LKY 's company
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Re: Buy & Monitor

Postby winston » Sun Feb 19, 2012 9:23 pm

The Secret to Long-Term Investing by Mike Kapsch
Wednesday, February 15, 2012

If you’re investing in the hopes to get rich quick, it’s time to reconsider.

The truth is, 9.9 times out of 10, real wealth – the kind that allows generations of families to live like kings and queens – is built slowly over time.

One chart can easily show how it pays to invest for the long term. It’s called an exponential growth chart, or “hockey stick” chart:

And understanding this chart should completely change the way you think about investing for the future.

Investing for the Long Haul

According to Dr. Chris Martenson, a former Fortune 300 executive, “Anything that steadily increases in size as a proportion of its current size” will give you “a chart that looks like… a hockey stick.”

In other words, as long as you can average more growth than not in your investment portfolio, you will experience exponential growth over time.

For investors, it’s easy to see why this kind of growth is a great thing.

Turning $10,000 into $1 Million

Let’s say you’re 25 years old and you only have $10,000 to invest with. You average just around 7% growth annually in your investment portfolio.

Thanks to compounding growth, at 7% growth, you’d double your portfolio every 10 years.

That means, after 10 years, your portfolio would total $20,000. After 30 years, it would be $40,000. After 40 years, it would be $80,000. And so on.

Over the course of your investment career, here’s what your portfolio would look like simply averaging 7% growth per year:

It’s important to realize what happens after 40 years of growing $10,000 at 7% per year. Although it takes 40 years to grow your portfolio to just $180,000, it takes just little more than 25 years to earn the remaining $820,000.

This compounding effect is why it’s so important to invest for the long haul. And it should help you make better investment decisions for the rest of your life.

http://www.investmentu.com/2012/Februar ... sting.html
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Re: Buy & Monitor

Postby winston » Sun Jun 03, 2012 9:26 am

Buy and hold for steady gains

In the first of our monthly series featuring fund managers and leading market experts, we ask Aberdeen Asset Management Asia's managing director Hugh Young about his slow and steady approach to investing.

By Aaron Low

In the topsy-turvy world of micro-second investing, complete with computer algorithms making automated buys and sales on behalf of traders, Mr Hugh Young's approach to buying companies based on values and trust may seem antiquated.

The managing director of Aberdeen Asset Management Asia studies a company, meets the management for lunches and visits the company's facilities - all before buying a single share of the firm.

But once he does, he sticks with it for a long time. Many of the firms he has bought have continued to stay in the funds he manages, for more than a decade.

Asked if he is a disciple of value-investing, much like the Oracle of Omaha Warren Buffett, Mr Young says: 'Well, who wouldn't say they are buying value?

'For us, it's about buying value with growth. We want growth but we also want growth at a value.'

The Aberdeen Pacific Equity Fund, which uses this approach, has not done too badly either.

Since its inception back in 1997, the Asia-focused fund has returned 11 per cent a year. This has beaten by a fair margin the MSCI Asia Pacific Index, which has seen 7.4 per cent annualised returns since 1997.

In simple terms, if you had invested $1,000 with the Pacific Equity Fund, your funds would have grown to about $4,700 now.


Q: How do you identify companies to buy for your funds?

We pick long-term leaders in many fields. We do this by getting to know them as best as possible, including making repeated visits to their offices to talk to their management.

I think some investors are sometimes dazzled by the prospect of growth of small companies or growth stocks.

Facebook, for instance, is 'let's all get excited about growth'.

But when there is a slight disappointment in the performance, the market reverses suddenly, and people may lose a lot of money.

And many did, did they not?


Q: How long do you usually hold your companies for?

Most of them have been with us for 10 to 15 years. Ideally, we'd like to hold them for a long time.

For instance, we've had OCBC since the inception. We've also held some Indonesian stocks from as far back as 1987. That's more than 25 years.

Over the last year or so, we've added just three companies - Li and Fung, AIA and HSBC.


Q: So it's a buy and hold strategy? I thought experts said that's all dead and buried in the current volatile landscape?

Yes, it is buy and hold. It's a rather torturous process but it's slow and steady.

But then again, timing the market is not all that easy. People say they can time the market but I've not come across very successful people.

Wasn't it just recently that JP Morgan's chief said they had lost US$2 billion (S$2.6 billion) in trading?

So maybe you can do well for three to four years, getting very good gains, but after that it can all go to pieces.

I don't think many people will be awfully excited about our stocks and they are really nothing to shout about.

But we've had a decent run - taking into account our exorbitant 2 per cent fees - getting about 4 per cent more than our benchmark on an annualised basis.

So we've done okay. But this is no guarantee that we will continue to do as well.


Q: What do you consider to be some of your best buys over the years?

Oh, not very exciting and maybe even boring. But these are good companies with good management that have grown well in a conservative, steady manner.

One is OCBC, which we bought in 1996 for our Singapore fund. Good bank, done all the right things and grown well.

Another is Australian insurance company QBE, which we added in 1991. Its share price has taken a bit of a hit due to the floods in Thailand but a good company still.

Another is Siam Cement in Thailand. Big company involved in the growth of the country too.


Q: With the markets falling now, are you looking out for good bargains?

I would say that there are no stunning bargains for sale now. And looking at the macro environment, it does seem that things could get a lot worse.


Q: Some investors have described the period between the 1950s and 2000s as being the great bull market. Is that the last great bull run or can we expect another?

I've never really felt that there has been a giant bull run in my 30 years of investing. In hindsight, it may seem that way but, while I was in it, it did seem as though we were just lurching from one crisis to another.

The market is perennially volatile and swings from wild euphoria to depression. But I do welcome the volatility as this creates opportunities.

Source: Sunday Times
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Re: Buy & Monitor

Postby winston » Tue Jun 19, 2012 8:58 am

Is Buy And Hold Dead? By Gordon Pape

I’ve read some articles lately suggesting that the time-honoured investment strategy of buy and hold is dead.

Today’s markets are simply too volatile, the argument goes.

Only active traders who are able to get in and out quickly can hope to make money.

To a degree, it’s true. Certain buy and hold strategies have proven to be non-productive in the current environment and should be avoided.


http://www.yolohub.com/trading/is-buy-and-hold-dead
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Re: Buy & Monitor

Postby winston » Thu Oct 04, 2012 6:54 am

“What always impresses me is how much better the relaxed, long-term owners of stock do with their portfolios, than the traders do with their switching of inventory.

The relaxed investor is usually better informed and more understanding of essential values; he is more patient and less emotional; he pays smaller capital gains taxes; he does not incur unnecessary brokerage commissions; and he avoids behaving like Cassius by ‘thinking too much.’”

- Lucien Hooper, Wall Street Legend
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Re: Buy & Monitor

Postby winston » Thu Oct 11, 2012 6:45 am

World’s Greatest Businesses

What makes a company like Coke one of the World’s Greatest Businesses ?… allowing it to beat the market for decades? And more importantly, how can investors use this information to find other great businesses to own?

I’ve been actively researching this topic for several years, and during that time I’ve identified 11 traits that are consistent with the World’s Greatest Businesses.

I urge you to print this list out, set it by your computer and consult it every time you’re thinking about making an investment decision. I’m convinced it will make you a better investor.

1.) The World’s Greatest Businesses sell their products at premium prices.

2.) The World’s Greatest Businesses sell products used in day-to-day life.

3.) The World’s Greatest Businesses have a global reach and appeal for their products.

4.) The World’s Greatest Businesses are highly scalable.

5.) The World’s Greatest Businesses sell things that consumers can’t live without.

6.) The World’s Greatest Businesses face little or no regulation.

7.) The World’s Greatest Businesses have unlimited growth potential.

8.) The World’s Greatest Businesses dominate their competition and have clear competitive advantages that keep rivals at bay.

9.) The World’s Greatest Businesses generate enormous cash flow with low capital spending requirements.

10.) The World’s Greatest Businesses return billions of dollars to investors in the form of dividends and share buybacks.

11.) The World’s Greatest Businesses have extremely high profit margins, or at least margins that outpace their industry averages.

http://www.yolohub.com/trading/the-cont ... eat-the-sp
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Re: Buy & Monitor

Postby winston » Sat Dec 14, 2013 8:53 pm

Avoid the 3 Pitfalls of Buy & Hold Investing

By Sheraz Mian

Source: Zacks Investment Research

http://www.thetradingreport.com/2013/12 ... investing/
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Re: Buy & Monitor

Postby winston » Fri Apr 18, 2014 1:46 am

A Triumph of Lethargy and Sloth By Chris Mayer

It's an inspiring tale… a triumph of lethargy and sloth.

And if you take its wisdom to heart, you'll be ahead of 99.9% of your fellow investors.

The tale – and the wisdom – comes from Robert Kirby.

Kirby was a great money manager that wrote a lot of wise things about investing. He was active in the latter half of the 20th century… and cut from the same intellectual cloth as Warren Buffett.

One of Kirby's best ideas is the "coffee can" portfolio

Kirby first wrote about the coffee can idea in the fall of 1984 in The Journal of Portfolio Management…

"The coffee can portfolio concept harkens back to the Old West, when people put their valuable possessions in a coffee can and kept it under the mattress," Kirby wrote. "The success of the program depended entirely on the wisdom and foresight used to select the objects to be placed in the coffee can to begin with."

The idea is simple enough: You find the best stocks you can and let them sit for 10 years. You incur practically no costs with such a portfolio. And it is certainly easy to manage.

The biggest benefit, though, is a bit more subtle and meaningful. It works because it keeps your worst instincts from hurting you.

In his paper, Kirby told the story about how his idea came about.

"The coffee can idea first occurred to me in the 1950s," Kirby writes. He worked for a big firm that counseled individuals on their investments then. He had a client whom he had worked with for 10 years whose husband died suddenly. She inherited his stock portfolio, which she moved to Kirby's care. Looking at the portfolio, Kirby writes:

I was amused to find that he had been secretly piggybacking [on] our recommendations for his wife's portfolio. Then I looked at the size of the estate. I was also shocked. The husband had applied a small twist of his own to our advice: He paid no attention whatsoever to the sale recommendations. He simply put about $5,000 in every purchase recommendation. Then he would toss the certificate in his safe-deposit box and forget it.

In doing this, a wonderful thing happened. Yes, it meant his portfolio had a number of broken stories worth $2,000 or so – small positions. But he also had a few large holdings worth $100,000 each. The kicker, though, was this: He had one jumbo position of $800,000 that alone was bigger than the total value of his wife's portfolio. As Kirby writes, "[It] came from a small commitment in a company called Haloid; this later turned out to be a zillion shares of Xerox."

As I mentioned, it's an inspiring tale, a triumph of lethargy and sloth.

It shows clearly how the coffee can portfolio is designed to protect you from yourself – the obsession with checking stock prices, the frenetic buying and selling, the hand-wringing over the economy and bad news. It forces you to extend your time horizon. You don't put anything in your coffee can that you don't think is a good 10-year bet.

Poor Kirby had been diligently managing the wife's account – keeping up with earnings reports, trimming stocks and adding new positions. All the while, he would have been better off if he followed the idler's creed and just held on to his ideas.

The coffee can portfolio is the ultimate buy-and-hold portfolio. You put a bushel of well-chosen stocks in a coffee can and forget about them for 10 years. Open after 10 years and, the theory goes, pleasant surprises await you.

I've never read anything by Kirby that didn't strike me as wise. (Someone ought to republish his papers in a book.) He is the antithesis of the trader, of those who would try to chase what's hot and what's moving. In another paper he writes:

I believe an article by Benjamin Graham that I read many years ago carried the opinion that the development of liquid, high-volume auction markets for shares of publicly held American companies has been about the worst thing that has ever happened to the investment business. I have a great deal of sympathy with his observation.

When you know you can sell something almost instantaneously, it messes with how you think about the purchase in the first place. You can be careless because you can get out quickly.

If you knew that every time you bought a stock you would have to hold it for a year, let's say, then you would buy with much more diligence.

That's a simple idea. And Kirby's advice is a logical extension of it:

I have said often to almost anyone who would listen that… a portfolio of securities [should] be run like a real estate portfolio… The typical real estate commitment is made in anticipation of a projected cash flow versus expenses, i.e., the future internal rate of return… the investor does not assume that he will be able to sell the property at a higher price to someone else later on. Common stock portfolios should be constructed, and their future returns measured, by the same set of criteria.

It is almost impossibly hard to live by this rule.

With constant measurement of returns and the oppressive 24-7 media cycle, the pressure to act is immense.

When your mindless neighbor doubles his money in Tesla in two months, the idea of an internal rate of return seems irrelevant and even pointless.

But then again, these are exactly the kinds of defeatist sentiments that bubble up during years of stock market exuberance, like 1929, 1999, and 2007.

Ironically, this is just when such unfashionable ideas are most important. That's really the point I would leave you with. Instead of worrying about the latest story on CNBC… instead of worrying about the stock market falling 2% in a day… focus on finding great businesses you can place in your coffee can. Resist the urge to sell them. Resist the urge to act.

It's this kind of careful thinking, along with plenty of lethargy and sloth, which will make you money over the long-term.

Source: Capital & Crisis
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Re: Buy & Monitor

Postby winston » Fri Jan 01, 2016 4:02 pm

Avoiding the 3 Pitfalls of 'Buy & Hold' Investing

By Sheraz Mian

Source: Zacks

http://finance.yahoo.com/news/avoiding- ... 06104.html
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