January | 2013 | wealthymatters

Timing,Timing,Timing……

January 9, 2013 Leave a comment

In most cases, when you buy is more important than what you buy. You can make money on the most marginal company if you buy it at the right time; you can lose money in the bluest of blue chips if you buy it at the wrong time.

The right time is when a stock is selling reasonably near the low end of its trading range or at an historically low price/earnings multiple, or when any other trustworthy guideline indicates a sharp reduction in risk. This low entry level provides a safety net dangerously missing at higher prices.

The wrong time to buy for the long-term investor is when a stock is selling near the high end of its trading range or at an historically high price/earnings multiple. – Dick Davis

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On Selling Stocks

January 9, 2013 Leave a comment

Perhaps the most difficult of market skills is knowing when to sell.

There is no one definitive answer, no formula that applies in all situations. To sell within a reasonable distance of the high is probably the best we can hope for, and even that is easier said than done. Since we already know that, invariably, stocks go higher after we sell, it makes sense not to sell all our shares at once. It doesn’t always work and it takes longer, but the odds favor a higher average price if sales are spread out. The most common mistake is selling winners too soon and holding on to losers too long.

Investors sell stocks for many different reasons. Here are some that make good sense: Read more of this post

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Dick Davis On Stock Investing

January 9, 2013 Leave a comment

wealthymatters.com 1.Bad markets are always followed by good markets.

2.Times of peak investor withdrawal from the markets (capitulation) represent excellent buying periods.

3.No one can buy at the bottom or at the low.

4.There is no reason to buy all of a position in a stock at one time. Partial commitments make good sense in volatile markets.

5.A dollar-cost-averaging approach, strictly adhered to, eliminates the need for market timing and, in fact, works better in declining markets.

6.The odds of a stock participating in a future bull market are greater if it is a seasoned, quality issue than if it is not. Read more of this post

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Sir John Templeton’s Maxims

January 9, 2013 Leave a comment

wealthymatters 1.For all long-term investors, there is only one objective – “maximum total real return after taxes.”

2.Achieving a good record takes much study and work, and is a lot harder than most people think.

3.It is impossible to produce a superior performance unless you do something unless you do something different from the majority.

4.The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.

5.To put “Maxim 4″ in somewhat different terms, in the stock market the only way to get a bargain is to buy what most investors are selling.

6.To buy when others are despondently selling and to sell when others are greedily buying requires the greatest fortitude, even while offering the greatest reward.

7.Bear markets have always been temporary. Share prices turn upward from one to twelve months before the bottom of the business cycle.

8.If a particular industry or type of security becomes popular with investors, that popularity will always prove temporary and, when lost, won’t return for many years. Read more of this post

Filed under Paper Assets, Tool Kit Tagged with postaday, Sir John Templeton, stock investing, The Templeton Touch by William Proctor

Scheduled Co-operative Banks

January 8, 2013 1 Comment

wealthymatters If you are tempted to chase bank deposit rates by investing in co-operative banks,make sure that they are scheduled.

Scheduled banks are those whose names have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934.RBI includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.One such criterion is deposit insurance.So if you don’t have the skills and means of evaluating the strengths of co-operative banks,restrict yourself to only the scheduled ones to safeguard your investments.

You can get a list of Scheduled co-operative banks here:Link