As from April 2013 my Journey in Investing is to create Retirement Income for Life till 80 years old for two over market cycles of Bull and Bear.

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This blog is authored by an old multi-bagger blue chips stock picker uncle from HDB heartland!

"The market is not your mother. It consists of tough men and women who look for ways to take money away from you instead of pouring milk into your mouth." - Dr. Alexander Elder

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Saturday, 12 August 2017

Two Common Investing Regrets Among Retail Investors (2)


Read? Two Common Investing Regrets Among Retail Investors

Read? Which one hurts more?


Sillyinvestor, CW, and I were bantering which one hurts more?

1.  Sell too early and missed out on outsized profits? 

2.  Sell too late and left too much money on the table?


Just to clarify. 

Letting a winning position turn into a loss is just plain dumb.



Hmm ...

This is where traders and long-term investors think differently and most traders don't get it.

Where hurts more?


Most traders don't get it!

Panadols are pain killer!

Dividends as panadols to ease heartache and then over long-term it can cure heartache when these stocks become freehold. 

Pain no more! 

You are true to Warren Buffet's Rule 1 & 2 as ultimate investors.

High single digit dividend yield on investment cost : Panadol

Double digits dividend yield on investment cost: Panadol Extra Strong.

Passive income dropping from money tree and becoming dumb investor without the baggage of emotional loss over freehold stocks! Need clarification?














Updated for recent DBS peak in 2017












3 comments:

  1. CW,

    Invest to receive panadols to ease the pain of losses?


    Eh. Sneaky leh. Under the guise of latest update, you choose to "highlight" the datapoint of 1 to support your case?

    Nah! You not like that.

    If not you won't show the other 2 out of 3 cases where you wished you have sold in your previous post ;)


    Phew! For a moment I was worried I think like the majority.


    ReplyDelete
    Replies
    1. Walau. The other two no change. 2007 is still historical high. For DBS, new historical high in 2017 as of now.

      Where got sneaky har?

      Delete
  2. Hmm, for myself even though have more than recovered from the deep drawdowns of 2008 ... but I think I prefer the *informed* selling or cut loss, to avoid future deep losses.

    Even though receive panadols, but also many worries lah:
    1) Panadol may be cut due to company/industry going thru secular slump OR unable to recover.
    2) Dunno how long the headache will last --- 6 months? 1 year? 5 years?
    3) Whether headache will progress into stroke .... from polyclinic to ICU?

    Hence I've been practicing non-thinking method of sell/buy since 2011. Sometimes performance not as good as buy-and-hold especially in non-trending markets (whip-saws). But I take that as insurance costs. And the avoidance of big pullbacks, while being able to buy back in relatively quickly soon after the lows more than pays for the costs.

    ReplyDelete

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