20 July 2011

Know when to rest in Investment Journey

Follow up with my post on 'learn investing similar to learn driving' as well as the post on 'investment is a long term journey', I would like to share with you my thought on investment. As it is a long journey, we have to know when to rest.

Sometime, when the market is in the bull market, we (as the long term investor) have to rest for a while to wait for a good opportunity to come. As I do not like the bull market, I always hope that the market can turn worse so that I can have a better chance to accumulate the stock for the good company.

We have seen several crisis in this ten years, namely Dot Com Bubble Burst and Global Financial Crisis, yet there are still companies to grow bigger and stronger. You can look at the market value of the Apple compared to 10 years ago. I always believe that, to invest and hold a stock for a long term, management is the most important factor.

So, if we have more than 10 years time horizon, please rest for a while when market is in the bull market, and wait for the worst time to come.

Good luck in your investment!


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