Lol everyone posts when they make money no one posts when they lose money lol.

Small cap all kena goreng one lah lol

World recession coming.. US down, UK down.. Asia down.. oil price down.. gold also down

This post has been edited by wodenus: Mar 11 2015, 06:33 PM

We need a new term for this.. stagcession

Opportunity cost is always around money market rate right?

This post has been edited by wodenus: Mar 12 2015, 11:27 AM

Huh what is an ED's yearly salary.. survive one year and you won't have to work all your life lol.

Then you hold it if you know the fundamentals are still good.

Nah opportunity cost is what you lose by holding the stock (if you are not making money from it) and not putting it in FD.

For a stock with good fundamentals, there's no "wrong" price. The only requirement is that the fundamentals are good and stay good.

Some cases in point: Maybank, IGBREIT, Sunway etc. If the fundamentals are good just buy it. A bit expensive also doesn't matter, if it's good you will eventually make money from it. Only thing is whether it will beat FD or not..

You probably won't lose money (in the long term) investing in a good company with solid fundamentals, unless the fundamentals cease becoming solid. Only problem is you will lose out to FD long term

This post has been edited by wodenus: Mar 12 2015, 08:27 PM

Yup, I'm serious. As long as the fundamentals are good and stay good you won't lose money. If you get a good price you will beat FD, if you get a bad price you will lose to FD. That is the worst risk if the fundamentals remain sound

Let me put it this way : the bank is willing to lend you money with those shares as collateral. Do you think they would do that if they thought they'd not make money long term from it?


This post has been edited by wodenus: Mar 12 2015, 08:36 PM

Yea well wasn't talking about small companies. Do small companies even have good fundamentals anyway.

From http://en.wikipedia.org/wiki/Opportunity_cost :



Say you have 10K spare cash. You can choose to keep it in FD or invest it in the market. Say FD rates are 3.5%. For simplicity's sake let us assume that the 10-year average FD rate is 3%. So at the end of 10 years in FD, you would have made a little more than 30% (if we consider compounding as well.) We'll just say you will make 30% to make things easy.

Now suppose your investment ends up making you 15% average in that ten years. This means you didn't lose money, but instead made money right? but that's only 15%.

So now we compare FD and investment, and we can see that we made the wrong decision, even if we did make money, because we would have made 15% more with less risk.

This 15% that we lost is called opportunity cost.

So you can see that if we invested the money, we didn't lose money, but we "lost money" compared to FD.

We always assume that we made the best choice, but only time will tell whether it was really the best choice. If it turns out that we didn't make the best choice, then we would have lost the money we could have had if we did make the best choice.

This money that we "lost" is called the opportunity cost.

This is also what I mean when I say, if you invest at the wrong price, and it's a good company with solid fundamentals you won't lose money. You might "lose" money compared to FD, but the ringgit value of your investment will pretty much always be higher.

This post has been edited by wodenus: Mar 12 2015, 09:12 PM

Gambling is luck.. investing is not so much dependent on luck. We have less than 10% of total net worth invested in equities. We can wait.. show me a company with continuously good fundamentals which has actually lost money long term.

LOL.. stay away from the small caps unless you know what you are doing

GST 6% on borrowed words

This. Worst thing that can happen if you buy a blue chip at a bad price.. you don't get to beat FD. In this country blue chips can go on forever.

Yes it is.. but people make out as if you will actually lose money.

That will depend on your personal inflation rate

Yes but it's not a blue chip.. looks like he's going for mostly blue chips and one div stock (Century)

Healthcare is a good industry to be in

Still is.. rolling DY is 6.62%

This post has been edited by wodenus: Mar 13 2015, 02:08 PM