Stock investing is not about buy low sell high
By scheng1
@scheng1 (24649)
Singapore
April 12, 2016 9:17am CST
When I talk about stock investing, those who are not in the market or losers will advise me to buy low sell high.
They think that buy low sell high is the way to make money in stock investing.
I tell them that buy low sell high is not a strategy at all.
If they think that stock investing is about buy low sell high, they better not invest in the stock market.
They will lose a lot of money.
Stock market investment is about finding great businesses that will pay us for a long time.
A great business will never sell at 1 cent per share.
In the context of Singapore stock market, the lowest possible price is $0.001.
Great businesses will never sell at such a cheap price.
6 people like this
4 responses
@scheng1 (24649)
• Singapore
13 Apr 16
There are so many books on investing, and there are many websites that provide good information.
Once you get the basic correct, and can control your emotion of greed and fear, you will do very well.
The best is to do research on just 5 companies, and then invest in 1.
Just one company a year, and you put your whole year saving in it.
In this case, you will be very careful, because you cannot afford to be wrong.
1 person likes this
@owstalaga (4707)
• Philippines
14 Sep 16
@salonga well I suggest you find a company that can invest your money for you for higher returns. There are ways to do that and one of them is thru life insurance companies. :) If you are in Metro Manila maybe we can talk about it. 
1 person likes this
@scheng1 (24649)
• Singapore
14 Sep 16
@owstalaga That is not a good idea.
Instead of buying insurance, a better way is to buy the shares of insurance company.
@CRK109 (14556)
• United States
12 Apr 16
Great businesses have learned over time when to buy and when to sell. I never really got the hang of it. When I was in school, we were given an assignment to pretend we had a specific amount of money and we had to buy some stocks and see how well we did. I did very poorly. So I leave it up to the professionals. :)
1 person likes this
@scheng1 (24649)
• Singapore
13 Apr 16
That is because none of you are trained to do your homework properly.
If you want to invest, you have to invest in companies that you know, such as Walmart.
You can compare the number of shoppers there with other supermarkets, and you can check the price for the item they sell, and you can know if the customer service level slips.
That is on top of going through their annual report to know their expansion plan, and investment.
1 person likes this
@CRK109 (14556)
• United States
13 Apr 16
@scheng1 When we did that in school, I was only about 12 years old. I did choose companies I knew, like Coca Cola. But we also had to choose companies we did not know. that was our teacher's choice. As an adult, I would do things differently now. But now I don't have the money to invest.
1 person likes this
@firdosh07 (15)
• India
12 Apr 16
You are right @scheng.....cheap mentality could only have cheap results..
1 person likes this
