The market dynamics have changed completely now.Investing with an outlook of 25 years is not recommended. Every year cycle changes.Identify the industry that holds potential,select leaders in that ,go for SIP in that particular stock and remain invested till you feel that the peak has been attained.Constant monitoring and reshuffling is a must.
Invest today and forget it for 25 years
- Thread starter Prudent8184
- Start date
Thanks all for your views and advices...
Anyone knows which is good software or system through which i can check which company has history of declaring bonuses/split...
i am sure there will not be another wipro/infosys (in context of declaring multiple bonuses) but you never know..
Thanks in advance!!
Anyone knows which is good software or system through which i can check which company has history of declaring bonuses/split...
i am sure there will not be another wipro/infosys (in context of declaring multiple bonuses) but you never know..
Thanks in advance!!
Moneycontrol has this information. Go to individual stock pages and click on corporate action in left side. Example here for sunpharma: :thumb:
Bonuses and Splits are of no benefit to the investor. They are an accounting gimmick and a way for the board to increase Volume on the exchange.
They do not increase book value, EPS, profitability or the goodwill. But what it does is, after Splitting the share price becomes much cheaper hence making it more affordable to the retail investor/trader and also print more volume (may be not turnover). This adds to the income of the brokerage houses, which in turn will be interested in promoting the company via news or fundamental reports.
Most of the stuff out there is pure shenanigans, with the investor at the receiving end of it. MF industry is a prime example.
They do not increase book value, EPS, profitability or the goodwill. But what it does is, after Splitting the share price becomes much cheaper hence making it more affordable to the retail investor/trader and also print more volume (may be not turnover). This adds to the income of the brokerage houses, which in turn will be interested in promoting the company via news or fundamental reports.
Most of the stuff out there is pure shenanigans, with the investor at the receiving end of it. MF industry is a prime example.
Prudent
Few years ago, real estate was worth holding for such terms but in today's scenario in India, it is bit riskier.
The safest thing to hold and forget is Bank Fixed deposit but inflation will drown your investment and you do take the risk of the bank going bust. (It does not happen in India very often but it does happen. It does happen in USA, whose economic model, India is slowly absorbing)
If you want to hold stocks, the first question you will need to answer is
Do you have mental capacity to look at very very long periods of drawdown?
My uncle holds RIL since 1960's, Ashok Leyland since 1998, TCS since 2007. However, for every good stock that he holds, he also has accumulated three rotten ones ;
Not surprisingly I've traded in the same stocks that he has but my turnover of quantity has gone much above his holding already. ASHOKLEY was my favorite one (until I learnt to get rid of emotion called "love")
A Good stock can be held forever but you cannot pre-decide the holding period of any duration at the time of purchase.
Whether to Hold or to Sell a stock is an on-going continuous evaluation and if you've pre-decided on holding, you are more likely to get caught in sideways.
Few years ago, real estate was worth holding for such terms but in today's scenario in India, it is bit riskier.
The safest thing to hold and forget is Bank Fixed deposit but inflation will drown your investment and you do take the risk of the bank going bust. (It does not happen in India very often but it does happen. It does happen in USA, whose economic model, India is slowly absorbing)
If you want to hold stocks, the first question you will need to answer is
Do you have mental capacity to look at very very long periods of drawdown?
My uncle holds RIL since 1960's, Ashok Leyland since 1998, TCS since 2007. However, for every good stock that he holds, he also has accumulated three rotten ones ;
Not surprisingly I've traded in the same stocks that he has but my turnover of quantity has gone much above his holding already. ASHOKLEY was my favorite one (until I learnt to get rid of emotion called "love")
A Good stock can be held forever but you cannot pre-decide the holding period of any duration at the time of purchase.
Whether to Hold or to Sell a stock is an on-going continuous evaluation and if you've pre-decided on holding, you are more likely to get caught in sideways.
Imho right now we are at a precipice, the bull market may not have much steam left in it, equities are already too expensive.
If you're buying and holding makes better sense to consider other asset classes.
1) Long gold for the next 5-8 years
2) Short US Treasury bonds (preferably 20 year) by means of going long inverse ETF's for the next 30 years
3) Long soft commodities (grains) for the next 10 years
These may be more viable options than buying equities at theses levels, even if you buy IPO's or recently listed companies if the direction of the market reverses its very hard for individual companies to go against the trend.
Alternatively wait for a deep correction and then invest in equities
If you're buying and holding makes better sense to consider other asset classes.
1) Long gold for the next 5-8 years
2) Short US Treasury bonds (preferably 20 year) by means of going long inverse ETF's for the next 30 years
3) Long soft commodities (grains) for the next 10 years
These may be more viable options than buying equities at theses levels, even if you buy IPO's or recently listed companies if the direction of the market reverses its very hard for individual companies to go against the trend.
Alternatively wait for a deep correction and then invest in equities
well whats wrong with our nifty.. lol
buy nifty and renew every 3 months hold for 25 years sure profit
share price can go dead low nift still is better thats only my point of view
and yes
tata motor is my fav
buy nifty and renew every 3 months hold for 25 years sure profit
share price can go dead low nift still is better thats only my point of view
and yes
tata motor is my fav
Instead , options may be considered . ( Oh - what those big fundies are doing then ? )
mixter
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