Wednesday, 31 August 2011

Long Term Investing by Uncle8888

http://createwealth8888.blogspot.com/2011/08/investing-made-simple-by-uncle8888-22.html


Tuesday, 9 August 2011


Investing Made Simple by Uncle8888 (22)

Read? Investing Made Simple by Uncle8888 (21)

ST, Tuesday, August 9, 2011

S'pore retail investors make flight to safety. Massive volumes of stocks traded as many prefer cash to equity.

Engineer Sun Weixin, 28, liquidated his entire portfolio of mainly bank and blue-chip shares yesterday, worth less than $40,000. He suffered a loss but did not want to disclose the amount - but said he felt there is too too much uncertainty to stay invested.

Read? investors flock to low-risk assets, with focus on cash

Read? Should I sell all my equities and stay sideline?

Should Uncle8888 also sell out all equities and stay sideline?

Since 2001 he has been thinking very hard each time a Bear market arrived whether he should sell out all his equities and stay sideline until certainty come back to the stock market before reinvesting. This time is no different and he is thinking very hard too.

So actually what has happened to him during the past Bear markets for being stubborn or stupid?

He has been holding the following stocks across several bear markets:

  1. Kep Corp since 2001
  2. Semb Corp since 2002
  3. DBS since 2003
The last Great Bear of 2008/09 didn't crash down Kep Corp and Semb Corp down anyway near his initial purchase price. In fact, his initial purchase for Kep Corp is now cheaper by 10% after 10:1 bonus share issue; and plus a small capital gain and small additional dividends coming from K-Green (dividend in specie).

His initial DBS holding is also cheaper by 16% after the 2:1 right issue; and internally price adjusted for all unit shares based on theoretical fair value of  right issue shares.

There was no corporate action on Semb Corp. :-(

TSR as on Monday closing, 8 Aug 2011
  





For the coming Bear market, he is even more stupid to slide with the Bear with more members on board.










Will Uncle8888 survive this Bear to write more stories on short-term trading and long-term investing using his Pillow stocks strategy and finding Touch Stones?


http://wincrt.blogspot.com/2011/08/create-wealth-through-long-term_09.html

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