01-12-2016, 03:32 PM
Kerim hit the nail on the head. I concur with his thesis and follow a similar model - I am not trying to beat the market, but I am also not trying to match the market. If that was all I was trying to do, I would simply go with index funds and wouldnt bother with individual stocks. Slowly building an income stream over time is what I am focusing on. The daily, monthly, quarterly and even yearly ups and downs dont concern me.
I am reminded of Warren Buffett's quote - "I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years." Theres a lot of wisdom in that quote. We shouldnt be looking to make money by trading in and out over a year and should always look at long term horizons.
Personally, I am terrible at timing the market. I seldom pick a bottom when investing, and if I do - its because I am lucky. But over time, these little bumps dont matter. Looking at my own personal portfolio - whatever Ive bought in the last year or so has seen negative returns (on the book only), but whatever i bought 3, 4, 5 years ago are handsomely up thanks to the effect of time. The flip side is that I wish these stock prices were lower so that I could buy more
Best
R2R
I am reminded of Warren Buffett's quote - "I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years." Theres a lot of wisdom in that quote. We shouldnt be looking to make money by trading in and out over a year and should always look at long term horizons.
Personally, I am terrible at timing the market. I seldom pick a bottom when investing, and if I do - its because I am lucky. But over time, these little bumps dont matter. Looking at my own personal portfolio - whatever Ive bought in the last year or so has seen negative returns (on the book only), but whatever i bought 3, 4, 5 years ago are handsomely up thanks to the effect of time. The flip side is that I wish these stock prices were lower so that I could buy more
Best
R2R