facebookIs it better to go long, take profit, look at another counter and repeat, or buy and hold forever during these volatile times? - Seedly



20 May 2020


General Investing

Is it better to go long, take profit, look at another counter and repeat, or buy and hold forever during these volatile times?

SeedlyTV S2E05

Discussion (3)

What are your thoughts?

Lim Qin Da

Lim Qin Da

20 May 2020

Business Administration & Analytics at National University of Singapore

Answers from the panel!

Sudhan (Seedly): What I would do is just buy and hold. The first method may sound like it's better, especially now, but it is a lot of hard work. You buy, take profit and you have to reinvest in another company, and you have to research on another company all over again.

Stanley (Value Invest Asia): I started off investing with the first method, but even with so much effort I did not really outperform the index by a huge margin. Now I have shifted to a buy and hold investor. One example is Shopify, which I bought for my family about 5 years ago, and it increased by 30 times without me realising. If you really want to create passive income, be more passive.

Ser Jing (The Good Investors): You can find more about the Coffee Can Portfolio, to understand the power of just holding on to stocks in the long run. For people who want to buy and sell, it is valid for certain investing strategies, such as deep value investing. But if you are looking out for good companies that can compound wealth over the long run, then it makes sense to hold on to them. If you sell them, you would have to find a better replacement for them and often times you can't find a better one.

For more discussions on SeedlyTV S2E05, you could check out the video and Q&A here! ​​​

Particularly for retail investors (but also generally), given that we are no prophets,

there is only a single one successful investing strategy:

playing not against (all things short-term, 'market timing') but with time (ultra-long-term investing, patience, = Buy & Hold).

It's a continuum from day trading to almost non-doing.

However, the other most important dimensions are optimum asset allocation (equity selection), as well as reducing any of the myriads of transparent and not so transparent fees almost to 0.00 SGD. good luck !

IF you are a trader , go for the first scenerio

IF you are an investor, go for the second scenerio

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