Tuesday, September 16, 2008

Shares Market (Who is Ultimate Winner?)

A lot of people claimed that be a winner in equities market, money or cash in hand is a major issue. But, I had a difference opinion on that, because I am always emphasis “patient” and “wait” is important than cash in hand.

Let me give an example, If you have USD50 billion cash in hand on last year. That period is beginning stage of financial crisis on sub prime loan. Lehman Brothers’ shares price heavy drop on that period. You are used that saving bought all the shares of Lehman Brothers. Today, final result is your holding become “NIL“.

The Tamasek Holding in Singapore and China reserve fund did the same investment strategy. But today, unrealised loss in their book is multibillion. A lot of people also claimed that is impossible. That is nobody stupid like I say, solely invest one counter only.

Please do not forget, last year FED of USA and Central bank of Euro, they have been injected the funds into Financial market because they trusted/believable the super funds could help market be stable. The redorded amount was bigger than USD50 billion. But final result is also same as above. They all are riches and powerful but finally also eating the same “bad fruits”. All rescues become negative effect to help economic turn better or stables.

Hence, the meaning of “Waits” and “Patient” become realistic and is a proven theory to invest equities market. Fully understand these two words bring you to gain/maintain better than others people, instead of like a “No Head Fly searching the delicious foods”.


无可辩驳的是没有本钱是其中之一的因素,但不是绝对的因素。让我们想一想,如果您在不当的时间买进,就算您多么有钱到最后可能一无所有。举个例子,上一年您手头上有五百亿美元,在去年这个时候买进Lehman Brothers 的股票,我相信现在是一无所有。很多人会说那会这样傻,那会只是买进一个股票呢?

就是会有这样的事发生了。那就是美国的FED 和欧洲共同体的中央银行,为了援救银行动用的资金比以上的更多。只因为他们相信这一措施可以缓解市场。他们不只有钱也又势力,结果却是越来越糟糕。所以在股票市场金钱不是主要因素,而是耐心和等待的人才是最后的胜利者。


Phil said...

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Bursa KLSE Blogs and News

3POINT8 said...

patient and wait?
Should the better advice be 'diversify'?
In case you lose on one counter, you might earn from other counters that could counter back that lost