If you view stocks merely for capital gain, merely as a tool for
speculation, then you can earn fast and lose fast.
Investing for dividends and long term growth is akin to
investing in a property. There's nothing wrong buying blue chips
during recession. How many of your friends were telling you to sell
at the start of 2008? Were you buying back then? Did you have to
courage to put money in when there's huge margin of safety although
prices are going down? It's easy to say on hindsight, I agree. But
the person in the article did that as well, bravely buying when STI
was below 2000 when everyone was running away.
Prudent homework have to be done. It's not easy money, because
you have to know why and what you are buying. I have missed
opportunities because I have not yet finished doing homework on it,
but so?
High risks? It's not when you have done sufficient homework.
In short, if you are buying on speculation and hearsay, you are
subjected to high risks. If you buy according to sound principles,
risks are extremely low. i.e. I bought SPH at $4, $3.8, $3.14,
before it went down to near $2, but I held all the way as it was
for long term dividend investment. I have received quite a bit of
dividends, and it is back to positive. The value does rise fast and
drop fast, but as long as you know what you are buying for and
stick to your strategy, the risks are very low.
It's indeed weird that people run away from GSS in equities, but
rush to GSS in shopping centres...
Another example... Starhub... I still remember how people were
complaining when it lost the BPL to Singtel... Look at the price
now since the BPL incident.
Just a qns, so in ur view, is it still GSS now if u wana invest
long term? Since from the recession, most of the stocks have rose
more than 50%, so will it peak at here? :)