#INVESTMENT MENTOR - Spouse or One Night Stand?
(Warren Buffet)
To buy some stock to keep it over years? Come on that was yesterday....
Today we need active traders or even better Daytraders!
At least that´s what more and more people and so called stock market specialists keep telling you nowadays. They mostly explain it with the stock market having a higher frequency and ways more price fluctuations. In their opinion you shall not be married to a stock but rather trade it quick as flexibility is the alpha and the omega...
Okay, so far so good. This means the Investor of today got to trade. He got to trade as fast and often as somehow possible. But whoever sees his stock as a One Night Stand, got a Problem, as he never knows when the right moment for a sale has come. Is it whenever the stock is down in order to prevent further losses? Whenever it´s up a little, to secure the profit? But in case the price develops differently from someones expectation, what´s he doing then...?
It definitely got more hectically and faster on the stock market but this doesn´t mean that you have to trade every few minutes to gain some profit. The good old growth-strategy isn´t outdated yet, for sure not!
The ups and downs on the markets may have increased but this isn´t the fault of the Companies but the Investors. It´s them running after each single news announcement out there, which won´t change the fact, that the price will always reflect the companies development in the longrun.
So whoever is brave enough to "bet" some money on a company and to keep the stock even in the worst downs will be rewarded for it in the end. Making a stock your spouse is definitely still a successful way of increasing your wealth and for sure the less worrisome in todays markets.
don't even think about owning it for 10 minutes...
(A Proud German Ambassador from & for #Teamaustralia!)
Speaking some truth. I was a professional day trader for 5 years. I'm still in touch with a lot of my day trading friends. It is a dying profession. For all the "activity" the daily volatility is a joke and most of the moves are gaps on the open/closing price.
Only traders I know making money are swing trading. The buy and hold strategy is best for the regular investor. Like you quoted, find companies with upward growth.
Thanks a lot @scaredycatguide, I think we just share the same opinion on this despite you probably having a ways better insight into the market :)
Agreed and your insight was quite good as well.
I agree. Even though the US stock market as a whole is definitely not undervalued, the basic premise of holding onto high quality companies, especially ones that pay increasing dividends, is still totally viable.
The stocks paying good dividends are even more valuable, I can just agree with you on this. Especially whenever they belong to a company having a healthy growth rate and a solid business. I´m glad to see that I´m not the only one still believing into this strategy :)
Beautiful vision
thank you very much :)
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