Something has been bothering me for a while. Say if we follow Buffethology or long term investment and gain multiplied profit, but as long as we keep investing then it is still profit in paper. We know the longer we keep the higher return we will get (From the history we can see that.) And we also know when we stop investing, our money don't grow.

But like the case of Price Alwaleed to Citigroup, his current investment value fell below the initial amount in the 80s'. Although he made billions in few years back, but everything is zero now in financial crisis.

Therefore, just wonder how many people here have actually buy stock when price is low and sell to cash out when it is high in last year ? If there are, how did you do that to confront your greed ? What if the market continues to grow after you sold your stock ? It would be very risky to return in market.

Please share your other opinions.

This post has been edited by rayloo: Jan 29 2009, 12:42 AM

i give general strategy of liquidation.
I will liquidate bout 10% when KLCI reach 1000
another 10% when KLCI reach 1100
20% when 1200
20% when 1300

else, i keep and receive dividend

depends.
If good defensive counters, just keep and makan dividend
Short term trade 15-20% cabut lari first in current market conditions.

I think many of us including me make lots of study for entry point, but exit point is neglected. Got to make effort for that.
We all know the good buying price is when it declines to half of the intrinsic value, so I guess the best selling point is when it exceed 2 times of the value ?

This post has been edited by rayloo: Jan 30 2009, 11:06 AM

Neo, basically that means you will keep 40% stock for dividend as investment no matter the KCLI condition right?

Right now, my plan is to buy as many 50% blue chip and 50% reits and will only liquidate them if them give me 30% profit otherwise i will take the dividend.