But to
go about investing in stocks in India you need to follow some basic guidelines that have been simplified in the last few years.
Not exact matches
So if you have a 70 - year investment horizon until you need the money, and you have no opinion
about future market direction,
go ahead and get fully
invested in stocks.
While an aggressive type portfolio will naturally fluctuate over time and has more «volatility,» this is nothing to get scared
about because you are saving this money for the long term and over a 10 + year
investing horizon you are
going to make more money
investing in stocks than
in bonds.
Think
about this: if people thought that there was a realistic chance that
stocks could
go down 35 - 40 %, would they
invest in stocks?
Here's a letter to the board of Biglari Holdings re: executive compensation [Noise Free
Investing] & then more thoughts on Biglari's compensation agreement [My
Investing Notebook] Where things stand
in the market [Bespoke Investment Group] A list of
stocks Nasdaq is canceling trades
in from yesterday's madness [Business Insider] The best interest rate chart
in the world [Trader's Narrative] A great macro overview from Barry Ritholtz [The Big Picture] A look at John Paulson's possible ownership of Bear Stearns CDOs [Zero Hedge] John Mauldin on the future of public debt [Advisor Perspectives] Top buys & sells from Morningstar's ultimate
stock pickers [Morningstar] The truth
about «Sell
in May &
Go Away» [WSJ] An interview with hedge fund manager Hugh Hendry [Investment Week] Bill Ackman: Let's have a public registry for
stock opinion [Barron's] Hedge fund Harbinger hires ex-Orange chief for wireless plan [Dealbook] & Deutsche Telekom has been
in talks with Harbinger [FT] Hedge funds begin to restructure fee system [FT]
Additionally,
investing legend Howard Marks published a widely - read memo on Wednesday that warned on a variety of market conditions right now, including positioning around the FAANG
stocks and a lack of ideas
about what could
go wrong
in markets.
To what extent do you view your
investing life as an extension of your personal life?By that I mean to what extent do the personal morals and ethical values of Tim the man govern the
investing decisions of Tim the dividend growth investor?If you ask your typical dividend growth investor if they would be willing to
invest in a lucrative but immoral venture, say selling child pornography or crack cocaine, the answer would probably be «absolutely not» regardless of the yield, valuation or growth prospects of the underlying venture.And yet, ask that same investor what their thoughts are
about Phillip Morris and they would probably describe what a wonderful investment it is and
go on
about why you should own it.Do your personal morals ever come into play when buying companies, or do you compartmentalize your conscience, wall it off from the part of your brain that thinks
about investments, and make your
investing decisions based on the financial prospects of the company?The reason why I'm asking is that I keep identifying
stocks of companies that I love from an
investing perspective but despise on a human level.I can not
in good conscience own any piece of Phillip Morris knowing the impact that smoking related illness has on the families of smokers.You might say that the smoker made his choice to smoke so you don't mind taking his money, but his children never made that choice and they are the ones who will suffer when he dies 20 years too soon.
I have two questions: 1) Is there any argument that can be made for
going with a
stock allocation (I do not mean for those
going with a high - dividend
stock strategy, I am talking
about those
invested in a broad U.S.
stock index) above 30 percent at today's valuations?
And what I'm talking
about is taking huge risks like putting all of your money into a couple of
stocks and one of them winds up
going into bankruptcy, or we have a big market decline, You are over
invested in stocks, you panic when the market
goes down, you lock
in your losses and you've given up money that you will never get back.
Great tip, but if you are
going to be
investing in stocks, don't forget to remind everyone
about commission fees.
If you are
going to
invest in penny
stocks, do your research carefully and do not speculate
about the
stock.
John Bogle will
go down
in history as a Hero to the Middle Class for what he has taught us all
about how
stock investing works
in the real world.
@Christy: I'm
going to do a shameless plug here for http://www.bogleheads.org/forum (I hope you don't mind JD), as a great beginning resource to learn more
about indexing and
investing in general (though the majority of posters there are indexers and don't advocate
stock picking at all.)
As
stock investing generally requires a very detailed market study and is a very volatile investment
in terms of return of investment, investors, especially the new investors out there are now turning to
investing in bonds, as bond investments are safer than most of the other forms of investments and you need not constantly worry
about prices
going high or low.
I was thinking
about investing in AMD today, but it turns out that despite them reporting layoffs, their
stock went up.
A: Even though you don't
invest in stocks with the intention of losing money,
about 1/4 of the time,
stocks go down.
In your second part, I was reminded of the old
investing story
about the trader who starts researching the fundamentals of a company when a
stock goes against him.
Defo your passion for
investing properly has inspired me to
go about it the same methodical way, first thing I do
in work is check my
stocks on Degiro!!
If you want to beat the crowds / indices, I think there's two ways to
go about it — i) take a relatively passive approach, but become knowledgeable & experienced enough to exit over-valued markets & to over-commit (or avoid selling)
in distressed markets, ii) as I've said,
invest the time / effort & tackle / climb that learning curve so you learn how to consistently assemble & manage a well diversified portfolio of mispriced
stocks.
There's a lot of pent - up strategizing that we have not been able to tap into for 30 years that is
going to come out
in a flood once it becomes clear that there is no longer any danger
in talking realistically and honestly and accurately
about stock investing questions.
OK, so if
investing in companies whose
stock trades cheaply relative to its earnings or companies whose
stock trades at or below book value has historically provided a return greater than that of the
stock market as a whole, which of these two strategies should I choose and how should I
go about actually implementing it?
While other analysts tend to believe a
stock will either
go up or
go down, value investors are content to say «I don't know» on a majority of
stocks, and only
invest in the ones they are relatively sure
about.
And
in the fullness of time, as we have now come to realize, Toyota
stock has
gone up a lot from that standpoint, and investors, which properly explains the kind of results we've managed to have
in our mutual funds that Consuela referenced, is because a patient investor with the contrarian value mindset I've talked
about, as long as you're buying the
stocks on sale and not those that are offered on clearance, i.e., which nobody else wants ever — so we don't believe
in distressed
investing or deep value
investing, we're talking
about quality companies that are available on sale — you can make what I'm
going to call performance statements
in your portfolios, as opposed to what I'm
going to describe what a lot of investors try to make, which is fashion statements.
Remember when Pokémon
GO came out (only just
about 1.5 months ago), and a bunch of people
invested in Nintendo and sent he company's
stock value soaring?