On
23 December 2015, I wrote that investing involves holding on to stocks
for long term to enjoy compounded return, other stock market activities
are at best "trading".
https://klse.i3investor.com/blogs/icon8888/88514.jsp
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However, recently I have been reading extensively about Investment Gurus' works. One thing that shock me is that very few of them actually hold stocks forever. Contrarian investor John Neff sold his stock within months if they registered good return. Even Joel Greenblatt (KC Chong's favourite) also indulged in short term activities.
As long as can make money with proper consideration of risk, it is valid. No need to hold long, long term only to be considered legitimate.
I hereby declare :
"Investing
should not be defined only as picking good stocks and holding forever
to enjoy compounded return. Buying an overlooked stock to wait for
market to rectify mispricing and hence provides opportunity to cash out,
is also considered investing. Even if it happens within few months.
Short term activities should not be automatically frowned upon. Anything bought based on careful evaluation of value and proper reasoning, and in the event that things turn sour, can be held until recovery, is considered investing.
Holding period is totally irrelevant."
https://klse.i3investor.com/blogs/icon8888/190807.jsp
https://klse.i3investor.com/blogs/icon8888/88514.jsp
===========================================================================
However, recently I have been reading extensively about Investment Gurus' works. One thing that shock me is that very few of them actually hold stocks forever. Contrarian investor John Neff sold his stock within months if they registered good return. Even Joel Greenblatt (KC Chong's favourite) also indulged in short term activities.
As long as can make money with proper consideration of risk, it is valid. No need to hold long, long term only to be considered legitimate.
I hereby declare :
Short term activities should not be automatically frowned upon. Anything bought based on careful evaluation of value and proper reasoning, and in the event that things turn sour, can be held until recovery, is considered investing.
Holding period is totally irrelevant."
https://klse.i3investor.com/blogs/icon8888/190807.jsp
