Author Topic: Invest for long term to grow wealth  (Read 1147 times)

Offline Oly Shyte

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Invest for long term to grow wealth
« on: July 13, 2015, 05:31:32 PM »


Quote
Understand the risks you are taking and brace yourself for the outcome.

IRENE Bergman turns 100 this coming August.

She is the longest-serving financial advisor on Wall Street and still calls her clients regularly.

Her advice for profitable investment is “Don’t obsess over quick profits... best to wait at least three years, better yet, many more before evaluating holdings. If thesis is wrong, have courage to make the changes.”

The Bergman story serves to reinforce basic rules in investing – invest long term to grow wealth and do not time market for quick gains.

Action requires courage

Today’s investing environment is exciting for punters in a market not far north. If one can stomach the turbulent gastric juice tsunami, then fast bucks can be made. Or fortune lost!

If one is an average Malaysian working hard to ensure one’s hard-earned salary can beat inflation, currency crash and GST, heed Bergman’s advice. Grow one’s funds in a portfolio of assets.

Malaysians generally love real estates and stocks! In recent years, investors’ appetite for more sophisticated assets has increased as more are putting their bets in ETF, structured equity funds, gold bars, wine, art and historical artefacts and plantations.

Speculating vs investing

So which should one do? Speculate or invest? Both are similar. Whether one speculates or invests, one wants to grow capital. The difference is the risks a speculator or investor can tolerate to get the monetary rewards.

Speculators, in Bergman’s view, are those who take higher risks and expect abnormally high and quick profits. Investors, on the other hand, invest in assets with reasonable risks and wait for satisfactory yields after three years or more.

Whichever you are, understand the risks you are taking and be prepared for the outcome. If one is a speculator, as Bergman in her 40-plus-year career said, “Don’t do anything stupid.” Yet when one sees one’s bets in stocks being obliterated on-screen, it is hard to stay invested and keep calm!

Current Malaysian investing climate is volatile; yet both speculators and investors do not have the crystal balls to inform them when profits would come in. It helps to shop around for one’s own Bergman to advise you on the right portfolio to invest and stay invested through thick and think!

Happy 100th birthday, Irene Bergman. May we all live a long and prosperous life like you!

 8)
Disclaimer: Every "I EAT" thread created were totally owned by Oly Shyte based on personal observation. It does not represent any stock promotion, buy, hold or sell call and most importantly gathering followers. Please make your own decision wisely! - OLY Securities Research

Offline Paul99

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Re: Invest for long term to grow wealth
« Reply #1 on: July 13, 2015, 06:36:21 PM »
It may not be easy to buy & then hold shares for long term.
Last year I subscribed Sasbadi (1.19) and get some lots.  when it rise to about 1.45, my wife had ever since then asking me to quickly realise the profit or ASAP.  esp when this year it rise to 2.40 to 2.50.. still I keep holding it.  & I told her that's for children future education fund.


some how finally I sold it off recently at 2.69..    and become a speculator again, out of sudden  :sweat: :S :sweat:
1 mountain got another mountain higher, 1 valley got another valley lower.

Offline Ļaughing Ģor

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Re: Invest for long term to grow wealth
« Reply #2 on: July 14, 2015, 03:15:28 AM »
It may not be easy to buy & then hold shares for long term.
Last year I subscribed Sasbadi (1.19) and get some lots.  when it rise to about 1.45, my wife had ever since then asking me to quickly realise the profit or ASAP.  esp when this year it rise to 2.40 to 2.50.. still I keep holding it.  & I told her that's for children future education fund.


some how finally I sold it off recently at 2.69..    and become a speculator again, out of sudden  :sweat: :S :sweat:

Whether to hold a stock long term depends on whether the country economy can grow long term.
Can someone to give me a Loan and then leave me Alone?

Offline eye-hub

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Re: Invest for long term to grow wealth
« Reply #3 on: July 14, 2015, 05:12:07 AM »
Example...
WTK....
The value will also there...
Palm oil will always have demand..
Demand will be high as population grow...
Timber will be scarce thus price will be very high...
Hence price one way up in long term...
Raw material price in  U.S.dollar....
Whether to hold a stock long term depends on whether the country economy can grow long term.
"Price is the most important factor to use in relation to value."  - Walter Schloss

Offline 1ton

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Re: Invest for long term to grow wealth
« Reply #4 on: July 14, 2015, 05:34:29 AM »
It may not be easy to buy & then hold shares for long term.
Last year I subscribed Sasbadi (1.19) and get some lots.  when it rise to about 1.45, my wife had ever since then asking me to quickly realise the profit or ASAP.  esp when this year it rise to 2.40 to 2.50.. still I keep holding it.  & I told her that's for children future education fund.


some how finally I sold it off recently at 2.69..    and become a speculator again, out of sudden  :sweat: :S :sweat:

the market will always be there

Offline eye-hub

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Re: Invest for long term to grow wealth
« Reply #5 on: July 14, 2015, 06:13:37 AM »
Watch out for El Niño ....


We're Expecting You, El Niño, But You've Let Us Down Before | WIRED


It’s happening again: El Niño is making all kinds of promises. Scientists and their meteorological models are all indicating a high probability of the weather phenomenon’s return this year, along with its drier conditions from Tennessee to Ohio and points east, warm weather in the Northwest, and wet conditions from Florida to California.

And boy does California yearn for El Niño. In fact, all the west is panting for a break in its dry spell. Hell, Alaska is literally burning for rain. And while the experts are giving us their expertly-couched assurances that this time, this year, “The Niño” won’t leave the west coast bitter and wanting, the storm has stood everyone up the last two times it promised to come knocking.

But before we get into that, there are a few things you should know about an El Niño.

The first signs of a shift come from the upper atmosphere. Normally, the trade winds blow from west to east. This stirs the Pacific Ocean in such a way that cold, deep sea water wells up against the equatorial shores of South America. But in El Niño years, those trade winds weaken or die. “This lets warm water accumulate in the eastern side of the ocean,” says Tom Di Liberto, a meteorologist with NOAA’s Climate Prediction Center.

But the El Niño needs even more atmospheric oomph to really get moving. This comes in the form of Westerly Wind Bursts, weeks-long weather patterns that push in the opposite direction of the trade winds. If enough of these bursts blow enough warm water from Southeast Asia across the International Date Line, they’ll cause an unseasonably warm spike of water to grow in the opposite direction, from Peru towards the west. On a weather map, this looks like a slow motion red-orange light saber.

In 2012 and 2014, the trade winds slowed down enough to let some warm water slip east, but the Westerly Wind Bursts never kicked in. So even though the ocean warmth looked promising, the atmosphere didn’t contribute enough to kick El Niño into high gear.

So what makes the scientists so sure that this year will be the year? “Well for one thing, we’re already in an El Niño,” says Amy Clement, a climatologist at the University of Miami. Scientists noted the oscillation in early March, but initially it looked too weak to be of any importance.

Since then, ocean temperatures have grown—up to 4˚ or 5˚ Fahrenheit higher than usual in the Eastern Pacific. “If you were swimming off the coast of Galapagos it would feel a lot warmer,” says Clement. These temperatures look a lot like the ones that came with the monster El Niños of 1993 and 1997. “But even though the temperatures are that warm, the winds aren’t cooperating like they were in 1997,” she adds.

And those flaky winds are what have other scientists not holding their breath. “Those Westerly Wind Bursts, I’m not seeing those right now at the right strength,” says Raghu Murtugudde, an earth systems scientist at the University of Maryland.

Other indicators are acting wonky as well. Typically, in an El Niño year, the Indian monsoon season shuts down. Instead, the nation’s capital Mumbai received twice as much rain during half of June than it historically sees in the entire month. And the rest of the subcontinent is likewise drenched.

But the monsoon and El Niño aren’t always perfectly coordinated. “And there are anomalous conditions all over the Indian Ocean,” says Murtugudde. “Pakistan is not getting the monsoon—it’s getting a heatwave, which may be linked to the cyclones in the Indian Ocean sucking away moisture.”

And there’s also the matter of the ocean temperature, which while warmer than usual in some areas, was actually colder in June than it was in May—especially in the crucial area along the west coast of South America. This could mean a slowdown of the the warm water transport from Southeast Asia, or it could just be a temporary pause. After all, those Westerly Wind Bursts push the ocean with huge, wave-like force. The cool down could be the trough leading into another peak.

If it did come through, The Niño could bust California’s drought. The state would need about 150 percent of its normal rainfall to replenish its reservoirs (the groundwater situation is a little bit trickier).

But that much rain could also trigger some nasty floods—the ground on the West coast is so dry that it may not be able to absorb water. And it wouldn’t be a lasting fix unless the winter was cold enough that a lot of the rain fell as snow on the high Sierra Nevadas.



Example...
WTK....
The value will also there...
Palm oil will always have demand..
Demand will be high as population grow...
Timber will be scarce thus price will be very high...
Hence price one way up in long term...
Raw material price in  U.S.dollar....
"Price is the most important factor to use in relation to value."  - Walter Schloss

Offline Oly Shyte

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Re: Invest for long term to grow wealth
« Reply #6 on: July 15, 2015, 01:05:55 AM »
the market will always be there
but the people might not always be there....  :D :thumbsup:
Disclaimer: Every "I EAT" thread created were totally owned by Oly Shyte based on personal observation. It does not represent any stock promotion, buy, hold or sell call and most importantly gathering followers. Please make your own decision wisely! - OLY Securities Research

Offline iiinvestsmart

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Re: Invest for long term to grow wealth
« Reply #7 on: July 15, 2015, 08:34:11 AM »
As she nears 100, Irene Bergman has some advice for enjoying a long career on Wall Street: Don’t do anything stupid.

Consider investment returns, the financial adviser at Stralem & Co. said in an interview at her New York apartment, where, surrounded by paintings from Dutch masters, she telephones her clients. While many investors nowadays obsess over quick profits, it’s best to wait at least three years, or better yet, many more, before evaluating holdings. But don’t be afraid of revising your thesis, she said. If thorough research favours a portfolio shift, have courage and make changes.
     
“The longer you’re in the business, the more pessimistic you get,” Ms. Bergman said in her soft voice, noting she currently thinks shares are too expensive. Still, “I’m able to get bullish, because when I look at a stock, I can imagine where it was 40 years ago.”

As one of the oldest working professionals in an industry run by men half her age, Ms. Bergman offers a rare perspective. She recalls the small private firms founded by German Jews of the 19th century that came to define Wall Street before their partnership model gave way to public listings, and honour succumbed to an ever-fiercer push for profit.

“The way of doing business has changed,” she said. “It’s much more competitive, much more knives-in-the-back.”

Vodka, Scotch

Guests at Ms. Bergman’s midtown Manhattan apartment, where she’s lived for more than 60 years, may be invited to sip a vodka or scotch, while seated on furniture crafted in Europe before World War II. The French Louis XV chairs are off-limits.

Four personal assistants attend to her needs around the clock, and she calls on colleagues at New York-based Stralem including chairman Hirschel Abelson when she needs research on particular securities. While she never married and doesn’t have children, she does own a Maltese named Fanny.

Her career was a near-realization of a dream she had as a teenager. In an essay at the time, she wrote that she wanted to follow her father, a private banker, onto the Berlin Stock Exchange. He made that world seem so “lively,” she said. She would have been the first woman to attain that position.

Fleeing Nazis

Those aspirations stalled when the Nazis chased her Jewish family from Germany and then Holland. They came to the U.S. In 1942, Bergman began working as a secretary at a bank. Fifteen years later, she joined Hallgarten & Co., a member of the New York Stock Exchange.

“Women on Wall Street were not very popular,” she said. She would join Loeb Rhoades & Co., and in 1973, Stralem, where she finally felt like she belonged. “This was the first place where I was treated like an equal.”

Stralem oversees almost $2-billion in assets and runs a strategy focused on identifying “up-market” and “down- market” stocks. It manages money for institutions and individual accounts, 11 of which are Ms. Bergman’s. She serves on its investment committee.

Ms. Bergman, who stopped visiting the office in December and turns 100 in August, attributed her longevity to good genes, not any special diet. She said she stayed physically fit by riding dressage horses until she was 80 and mentally sharp by forgoing retirement. Bergman speaks with Stralem colleagues daily and talks with some clients every week.

Recessions, Depressions

“She’s been through multiple business cycles, ups and downs, recessions, depressions, and has a good feeling for where things are going,” said George *, a doctor of internal medicine in private practice in Manhattan. “She understands what my needs are, has my interests at heart, and is not primarily interested in making a lot of money off of me. I have a great deal of trust in her.”

Ms. Bergman has *, 75, invested 100 per cent in U.S. Treasuries.

Her family’s post-war experience informs her advice today. Because it took a decade after coming to New York for Ms. Bergman to recover her family’s wealth, which was frozen by U.S. and Dutch authorities, she emphasizes the importance of safeguarding funds.

One bright spot for today’s investor is the ability to sell large blocks of stock quickly, Ms. Bergman said. Years ago, it would have taken Stralem weeks to execute a large order. Now it takes hours or days.

At the same time, speed has “great disadvantages,” she said. “People trade who shouldn’t be, or they do something too fast.”

Her caution has translated into loyal clients, according to Philippe Labaune, head of trading at Stralem, who said that in almost 20 years at the firm, he’s never seen her lose an account. Though some did close when their owners died.

Missed Opportunity

“In this business, you have to get the confidence of your clients,” Ms. Bergman said. “You don’t have your clients for three weeks, you have them for at least three years. It takes that long to know if you’re doing a good job.”

Customers appreciate that she has her own wealth. “They had the feeling that I didn’t need to churn their accounts because I had money myself,” she said.
Ms. Bergman does recall one investment she let slip away: Apple Inc.

“I missed Apple totally,” she said. “Apple was too much for me.”

That brings her to another tip: Make your own decisions.

“I always like to do what I want to do, then it’s my fault,” she said. “I can’t blame anyone else.”


http://www.theglobeandmail.com/globe-investor/investment-ideas/a-99-year-old-wall-street-veteran-reveals-secrets-of-her-success/article24749141/
(I read this many months ago, and she has, based on her personal experience, some good lessons for the long term investors.)
It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline iiinvestsmart

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Re: Invest for long term to grow wealth
« Reply #8 on: July 15, 2015, 06:01:56 PM »
Whether to hold a stock long term depends on whether the country economy can grow long term.


I am alarmed by the shallowness of this thinking.    :cash:

It’s better to buy a wonderful company at fair price than a fair company at wonderful price.

1.  Understand the business
2.  Business must have DCA
3.  Management with integrity
4.  Buy at a sensible price

Big Fat Pitch.  Focus Investing.  Long term portfolio for capital appreciation and income.

Offline Dorky

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Re: Invest for long term to grow wealth
« Reply #9 on: July 15, 2015, 06:11:44 PM »

I am alarmed by the shallowness of this thinking.    :cash:

-50%.

 ;)
Buy, sell, up, down, gain, gain.

Offline Oly Shyte

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Re: Invest for long term to grow wealth
« Reply #10 on: July 15, 2015, 11:36:32 PM »
Long term in terms of share price growth and good dividend paymaster.  :thumbsup:
Disclaimer: Every "I EAT" thread created were totally owned by Oly Shyte based on personal observation. It does not represent any stock promotion, buy, hold or sell call and most importantly gathering followers. Please make your own decision wisely! - OLY Securities Research

Offline persie

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Re: Invest for long term to grow wealth
« Reply #11 on: July 16, 2015, 05:50:15 AM »
Long term investment requires good fundamental of company.

Not all good fundamental companies can give good return. Some of them could be enemy in the blanket. Dont go far, just look at FGV, the first time it listed on bursa, many said it share price could hit rm8. And what happen now after few years.

Long term investment sometime be true. Sometime 3 weeks investment can give return better than 3 years investment. The important thing is you must know where your money yo invest in.
ALWAYS BUY QUIET & LOW COUNTER, DONT GO CHASE, JUST GIVE IT A PAST. IF ALREADY MISS THE BUS, MARKET IS ALWAYS THERE. DON'T BE GREEDY, CONTROL YOURSELF...AND YOU'LL CONTROL THE GAME.

Offline Rashid Jihad

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Re: Invest for long term to grow wealth
« Reply #12 on: December 21, 2020, 02:54:46 PM »
 8) :cash: :cash: :cash: