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Wednesday, 25 October 2017

Buy and Hold - Who sold you that idea?

(UPDATED: 28/10/17 - example changed to Creative Technologies for a better illustration. Thanks SMOL. Apologies for the poor example cited previously that had caused confusion in readers.) 
 
I've read the 2 recent posts from 2 wise seniors - Uncle CW8888 and SMOL recently. Allow me to induce some flavors of this 2 seniors into this blog post.

Everyone knows what buying and holding is.. So what exactly is buy and hold?? Being curious.. I went online to google about the exact definition.

From Investopedia
Hmm.. but buying and holding does not only applies to stocks!!

Is buying and holding a "sure-win" strategy?  
Buying and holding might increase your winning odds. But there's no guarantee!!
The asset you're buying and holding is important too!!

Let's take a look at 2 example.

Buying SGX in 2004 Jan?

$1.83..

Hmm..



How about buying Creative Technology in 2004 Jan?

$20.10..

Both also inside STI and accepted by investors wor.













Wanna see some real examples??


Read:
Buy and Hold - Who sold you that idea? - Uncle CW

Buy and Hold - Who sold you that idea? - SMOL



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6 comments:

  1. Singapore Man of Leisure25 October 2017 at 23:01

    sleepydevil,

    Thanks for not putting "Uncle" before SMOL ;)

    I appreciate it!

    LOL!

    ReplyDelete
  2. Lizardo26 October 2017 at 20:21

    Alamak, but buy-and-hold goes hand-in-hand with value investing mah. What kind of value investor would buy Blumont with this kind of strategy?

    ReplyDelete
    Replies
    1. sleepydevil26 October 2017 at 22:18

      Hi Lizardo,

      Thank you for dropping by my blog :) Yeap! I doubt anyone will adopt value investing for Blumont. I should probably get a better illustration! The aim is to show the difference between buying and holding the "right/wrong" thing.

      Delete
    2. Singapore Man of Leisure28 October 2017 at 10:49

      sleepydevil,

      May I suggest Creative Technologies or NOL?

      These 2 are not penny stocks and once upon a time both were inside STI - accepted by mainstream investors and instituitions.

      That's before both were kicked out of STI due to poor performance ;)


      People who invested in an Index Fund or ETF forget they have merely "outsourced" the cut-loss decisions to the index complier.

      No index buy and hold forever. There's always preening and pruning ;)

      Shh...





      Delete
    3. sleepydevil28 October 2017 at 11:01

      Hi SMOL,

      Thank you very much for the suggestion. Have changed the poor example of mine to Creative Technology for a better illustration.

      The holders of Creative at 2004 till date must be screaming in joy!

      Delete