Sunday, 11 December 2011

The best time to buy shares is not about timing the market but rather about time in the market.

Many people who decide they need shares as part of their investment portfolio often hesitate when it comes to actually buying the shares; usually because they're not sure if it is the best time to buy or they feel they still have a lot to learn about the sharemarket.

The best time to buy shares is not about timing the market but rather about time in the market.  No one, not even the famous sharemarket guru and one of the world's richest people, Warren Buffett, knows whether a particular share or the market as a whole will rise or fall in the near future.  What he does know is that it will rise AND fall, and that short-term volatility does not matter as long as it rises over the medium to long term.  

You can learn about the sharemarket by observing and keeping an eye on how your shares perform under different market conditions.


Stock Performance Chart for Nestle (Malaysia) Berhad
Long term investors aim to capture an upward trend in market value.



Short term investors try to capture value from the volatility in the sharemarket.

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