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altyfc
Joined: 29 Dec 2004
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Location: Aardvarkland
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 Posted: Tue Jul 31, 2007 12:01 pm Post subject: Investing in shares... how long? |
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They say that if you're investing in shares (and not day trading) then you need to be able to leave the money aside for at least 5 years if you're to see returns. However, if you invested prior to the dot com boom, 5 years would not be enough... what's a more realistic figure to think you should need to set the money aside? 10 years???
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LennyP
Joined: 27 Jul 2007
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| Posted: Fri Nov 02, 2007 5:07 am Post subject: |
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| You should only hold onto a share as long as it makes sense too. If you are a long term investor you should hold on to your shares as long as the companies fundamentals remain strong. If the fundamentals weaken then your investment is also weakening. Holding onto stocks of poorly run companies because you are shooting for a certain time frame can leave you with nothing. |
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altyfc
Joined: 29 Dec 2004
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| Posted: Fri Nov 02, 2007 11:13 am Post subject: |
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This is probably a six-million dollar question, but what are the fundamentals?
What should you specifically look for? And how do you decide whether those criteria are no longer there?
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capebretoner
Joined: 02 Aug 2006
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| Posted: Thu Jan 03, 2008 11:05 pm Post subject: |
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| altyfc wrote: |
This is probably a six-million dollar question, but what are the fundamentals?
What should you specifically look for? And how do you decide whether those criteria are no longer there? |
There are a few things that you have to look at. The balance sheet and other companies in the sector. The thing that I look at first is the P/E of the company in question and the average of the sector. If it is lower look more, find out why, is there a good reason? If not check the balance sheet and figure out how they make their money. If you can't figure out how they make their money you CAN'T invest.
There is much more that I can tell you or point you in a good direction, just let me know.
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zuipen
Joined: 16 Feb 2008
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| Posted: Sat Feb 16, 2008 4:45 am Post subject: |
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You can never invest in the stock market if you think in terms of timetables. You know when you get in, but you don't know when you get out. Anything else should not even be considered.
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capebretoner
Joined: 02 Aug 2006
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| Posted: Sun Feb 17, 2008 6:55 pm Post subject: |
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| zuipen wrote: |
| You can never invest in the stock market if you think in terms of timetables. You know when you get in, but you don't know when you get out. Anything else should not even be considered. |
So how does anyone invest in the stock market? According to that theory then you can only invest your "extra" money.
I have all of my retirement money in the market (mutual funds) but there is still a timeline when I will have to liquidate these, 30-40 years.
If you are doing your research and know the cycles you can figure out the timeline for your individual investments.
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zuipen
Joined: 16 Feb 2008
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| Posted: Mon Feb 18, 2008 4:30 am Post subject: |
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| capebretoner wrote: |
| zuipen wrote: |
| You can never invest in the stock market if you think in terms of timetables. You know when you get in, but you don't know when you get out. Anything else should not even be considered. |
So how does anyone invest in the stock market? According to that theory then you can only invest your "extra" money.
I have all of my retirement money in the market (mutual funds) but there is still a timeline when I will have to liquidate these, 30-40 years.
If you are doing your research and know the cycles you can figure out the timeline for your individual investments. |
Yes, in my opinion you should only invest in the stock market as much as you can afford to lose. If you think you're advanced enough, then I agree about a higher portfolio percentage in stocks, but all? That is risky, sir. Never keep all your eggs in one basket . You should spread as much as you can, even if the returns are lower. Just a friendly word of advice.
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altyfc
Joined: 29 Dec 2004
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Location: Aardvarkland
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| Posted: Thu Feb 21, 2008 10:10 am Post subject: |
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| zuipen wrote: |
| Yes, in my opinion you should only invest in the stock market as much as you can afford to lose. |
That seems a bit drastic. Whilst you can lose your money, if you spread your risk and invest over a period of time, you are more than likely to make gains rather than losses. I would say you should only gamble as much as you can afford to lose, but this isn't gambling.
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zuipen
Joined: 16 Feb 2008
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| Posted: Thu Feb 21, 2008 10:22 am Post subject: |
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| altyfc wrote: |
That seems a bit drastic. Whilst you can lose your money, if you spread your risk and invest over a period of time, you are more than likely to make gains rather than losses. I would say you should only gamble as much as you can afford to lose, but this isn't gambling. |
You're gambling that a certain stock will rise in price. You're either right or wrong. It is less risky than the roulette but still you're trying to be a Nostradamus in the stock market. Anything can happen. Certainly in a system that works with fiat money. The value of a bill can go as low as the value of the paper it is printed on.
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altyfc
Joined: 29 Dec 2004
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| Posted: Thu Feb 21, 2008 10:29 am Post subject: |
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Indeed, anything can happen. But I do not see it as gambling. These people probably put it better than I could:
From "The 5 Biggest Stock Market Myths"...
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Investing in stocks is just like gambling.
This reasoning causes many people to shy away from the stock market. To understand why investing in stocks is inherently different from gambling, we need to review what it means to buy stocks. A share of common stock is ownership in a company. It entitles the holder to a claim on assets as well as a fraction of the profits that the company generates. Too often, investors think of shares as simply a trading vehicle, and they forget that stock represents the ownership of a company.
In the stock market, investors are constantly trying to assess the profit that will be left over for shareholders. This is why stock prices fluctuate. The outlook for business conditions is always changing, and so are the future earnings of a company.
Assessing the value of a company isn't an easy practice. There are so many variables involved that the short-term price movements appear to be random (academics call this the Random Walk Theory); however, over the long term, a company is only worth the present value of the profits it will make. In the short term a company can survive without profits because of the expectations of future earnings, but no company can fool investors forever - eventually a company's stock price can be expected to show the true value of the firm.
Gambling, on the contrary, is a zero-sum game. It merely takes money from a loser and gives it to a winner. No value is ever created. By investing, we increase the overall wealth of an economy. As companies compete, they increase productivity and develop products that can make our lives better. Don't confuse investing and creating wealth with gambling's zero-sum game. |
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zuipen
Joined: 16 Feb 2008
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| Posted: Fri Feb 29, 2008 12:55 am Post subject: |
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Well, since we haven't been in that situation yet, I think that it is why the general public has a problem with viewing fiat money (and consequently stocks) as a potential risk.
It's backed by... nothing. That's what I call a real gamble.
At the rate the dollar is losing value and inflation going crazy, I wouldn't be surprised if we'd get up one day to find out we'd lost it all.
Prepare for a world without the dollar. I'd guess during the following presidency. It's been signed by Bush, Vincente Fox and the PM of Canada back in 2005.
Guess who will suffer from it? (Hint: Not them)
Power tends to corrupt; absolute power corrupts absolutely.
Most probably there will be an article circulating the internet in the order of:
"The 5 Biggest Myths of Fiat Money"
AFTER it happens...
just my $0.02.
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altyfc
Joined: 29 Dec 2004
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| Posted: Wed Mar 05, 2008 9:20 am Post subject: |
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| zuipen wrote: |
It's backed by... nothing. That's what I call a real gamble.
At the rate the dollar is losing value and inflation going crazy, I wouldn't be surprised if we'd get up one day to find out we'd lost it all. |
Somehow, I don't think so.
Are you serious?
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zuipen
Joined: 16 Feb 2008
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| Posted: Wed Mar 05, 2008 10:20 am Post subject: |
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| altyfc wrote: |
| zuipen wrote: |
It's backed by... nothing. That's what I call a real gamble.
At the rate the dollar is losing value and inflation going crazy, I wouldn't be surprised if we'd get up one day to find out we'd lost it all. |
Somehow, I don't think so.
Are you serious? |
I couldn't be more serious, altyfc. What would I gain if I would be joking?
I'll even add that it is all planned by the happy few to further enslave us.
Unless you've been living under a rock, our purchasing power has been decreasing consistently and it will continue to do so.
If you can print money bills backed by nothing, sooner or later the whole system will collapse and the creators of this system, bankers, knew it beforehand.
Are we witnessing this event taking place right now? Dollar losing value, gas and oil prices soaring, gold, silver, palladium skyrocketing, food prices, etc... I honestly think so, yes.
I've been recommending to buy gold and silver since 2001. A vast majority has always ignored the free recommendation. They prefer to put it on a "saving" account which makes a net loss. Apathy and humanity...
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altyfc
Joined: 29 Dec 2004
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| Posted: Fri Mar 07, 2008 9:28 am Post subject: |
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Can I just clarify what you are saying here... when you say "I wouldn't be surprised if we'd get up one day to find out we'd lost it all", what do you mean by "we" and what do you mean by "it all".
I took "we" to mean people the world over, but I'm not wondering if you mean we=Americans. FYI, I'm not in the US.
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zuipen
Joined: 16 Feb 2008
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| Posted: Fri Mar 07, 2008 6:07 pm Post subject: |
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| altyfc wrote: |
Can I just clarify what you are saying here... when you say "I wouldn't be surprised if we'd get up one day to find out we'd lost it all", what do you mean by "we" and what do you mean by "it all".
I took "we" to mean people the world over, but I'm not wondering if you mean we=Americans. FYI, I'm not in the US. |
"We" is everyone.
"It all" is everything. No value at all.
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