Allow me to retort. You do realize if you were to chart the trend from 1997 at it's lowest and then post this in 2007 during the super peak, your theories will be completely in the opposite direction. Is it not? If you did this then, you would probably be praising Warren Buffet and his 10 year theory as 'factually and statistically correct!'.


It's just a matter of how and when you look at it. Using one statement from WB and you conclude that this man is not to be followed blindly, is a bit weak in my honest opinion. Especially when you're looking at a chart which is spiraling downwards. Like I said, if you were to quote the exact sentence and charted it in 2007 back to 1997, you would be completely wrong then, wouldn't you?

This post has been edited by skiddtrader: Dec 17 2008, 12:12 PM

Yes, it is true you should not follow anyone blindly. Not only Warren Buffett, but ANYONE for that matter.

I like to say again, that if or rather when you sell your investments in whether unit trust OR stocks in the peak period of 2007, you would be arguing against yourself now. The KLCI from 700-800 of year 2000 range to 1400-1500 in 2007 is almost double.

To choose a time of convenience when markets are dropping, and say you are earning less than FD is a weak argument. When it can easily be completely opposite situation a year ago. If 2 years down the road, the crisis is over and the KLCI shoot back up to 1500 points, will you say the same thing? I highly doubt so.

All I'm saying is the basis of your conclusion is wrong, as you didn't include the aspect of timing and fair valuation.


Your mistake was ;
To choose a time-frame of 10 years with it ending at a time of global crisis and conclude that long term investments will earn less than FD even if professionals are handling your money.

It seems you are under the impression that dividend yield is some how directly related to par value of any stock. The only relation it has with the par value is when they announce the dividends based on % of par value. Normally they do that if the real DY is deemed too little to be announced in % form.

So par value should be thrown out the window when making a dividend investment. As it has no impact on dividend yields whatsoever. Can be said that par value can be thrown out altogether as it plays no part at all when investing or trading.

This post has been edited by skiddtrader: Dec 17 2008, 08:19 PM

You are asking the wrong crowd about spending money we don't have. As with any other investor will tell you, never invest unless you are prepared to lose it.

I would consider your investment style in FD as a ultra conservative. No risk and minimum gain. No chance of beating any inflation.

Your example is flawed as well, your interest from the loan of the bank will already exceed your interest accrued for the same amount you hold in the FD. You would be better off taking the cash from FD, buying the condo and earn rental there without paying any loan interest. This will maximise your returns for the cash you hold, instead of accruing more costs to earn additional income.