Summary:
Most of the time, such an action will lead one to make losses relatively and during bear markets it will lead you to make absolute losses. But the most galling aspect of chasing after bonuses is that some of the time, one is being led blindly into traps prepared by crafty insiders or their friends. In such instances, you are like innocent lambs led to the slaughter. The chances of you losing a great deal of money is very real.
Since it is very difficult for you to know which bonuses are of the innocent variety and which are not, is it not better to ignore all of them?
The best approach to take is the fundamentalist one; only buy those stocks which provide you with a reasonable return and which have the prospect of providing a constant long-term growth in earnings and dividend irrespective of whether they give bonus or not.
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Sunday, 4 October 2009
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Last week I had problem looking at your blog because it was open to members only. How to become a member of your blog?
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