Seriously this is an important question that, imo worth talking about and give it some due attention !!
Had you picked this listed company, Capitaland, one of the biggest property developer in Singapore, you are more likely to lose money. And we are talking about a good 10 years time frame ! Maybe, you were in your 20s or 30s back then , and how time flies, at 40 , you are married, changed job, had mortgages , a kid and maybe a 2nd hand car as well.
Wasn't there a rumor that said buying blue chip stocks are safe ? It appears not , really......
Other than hitting the peak price of 7 dollars in Feb 2007, it has tumbled to a low of 1.72 before recovering slowly to the current price of 3.20. And we are still stuck in that box of price consolidation.
Say you bought in Jan 2010 and hold the stock till now, not only you lost money in terms of capital depreciation but also the time value of money as well. 1000 dollars ten years ago can buy more stuff than today's 1000 dollars ! That is for sure. And that means if your investment did not generate a high enough percentage returns to cover you that gap, then the paltry dividends of 2.5% is not worthwhile (imo).
Until and unless the price breaks out of the box, I will not consider this stock at all.
Of course, you are entitled to your opinion based on your research and do not agree with what I said. That is fine so long as you are comfortable with holding it for a longer term and the risks involved. We are also talking about opportunity costs here (ie. the chance to make 10% returns annually with a much safer margin of safety compared to this stock). By dumping your money here, that means you are in some way being held hostage. You probably will not have the courage to cut your losses and move to the other side for fear that your decision may be wrong.
So, you are stucked ! And you are also angry , frustrated and as time passes, you develop a self limiting beliefs that buying stock is risky and it does not generate the huge returns as others said. That is because you had fallen into the well and when you looked up, your view of the sky is limited by the size of the well. And how small that is , you think. Until you decided to find ways and means to get out of the well and only then will you give yourself the chance to see the beauty of God, the creation that no words can describe.
Pick the right stock !
Had you picked this listed company, Capitaland, one of the biggest property developer in Singapore, you are more likely to lose money. And we are talking about a good 10 years time frame ! Maybe, you were in your 20s or 30s back then , and how time flies, at 40 , you are married, changed job, had mortgages , a kid and maybe a 2nd hand car as well.
Wasn't there a rumor that said buying blue chip stocks are safe ? It appears not , really......
Other than hitting the peak price of 7 dollars in Feb 2007, it has tumbled to a low of 1.72 before recovering slowly to the current price of 3.20. And we are still stuck in that box of price consolidation.
Say you bought in Jan 2010 and hold the stock till now, not only you lost money in terms of capital depreciation but also the time value of money as well. 1000 dollars ten years ago can buy more stuff than today's 1000 dollars ! That is for sure. And that means if your investment did not generate a high enough percentage returns to cover you that gap, then the paltry dividends of 2.5% is not worthwhile (imo).
Until and unless the price breaks out of the box, I will not consider this stock at all.
Of course, you are entitled to your opinion based on your research and do not agree with what I said. That is fine so long as you are comfortable with holding it for a longer term and the risks involved. We are also talking about opportunity costs here (ie. the chance to make 10% returns annually with a much safer margin of safety compared to this stock). By dumping your money here, that means you are in some way being held hostage. You probably will not have the courage to cut your losses and move to the other side for fear that your decision may be wrong.
So, you are stucked ! And you are also angry , frustrated and as time passes, you develop a self limiting beliefs that buying stock is risky and it does not generate the huge returns as others said. That is because you had fallen into the well and when you looked up, your view of the sky is limited by the size of the well. And how small that is , you think. Until you decided to find ways and means to get out of the well and only then will you give yourself the chance to see the beauty of God, the creation that no words can describe.
Pick the right stock !
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