When I buy a stock cheap, I am keeping my downside limited and am leaving more room for the. One of the most important things about getting substantial returns on your investments is not really selling but buying.
Several people pay undue importance on selling at the right time, but fail to give importance to buying. For example let us say you invested in Unitech in 2002. Would that decision have more value or would the decision to sell in 2007 or 2008 have more value? Yes, there might be some minor differences in the stock price between 2007 and 2008, but most of the money would have been made when you bought into Unitech after finding out about their huge land bank which was relatively unknown at that time.
If you have done your buying wisely, selling would not really be something to think about. Warren Buffett had once said that investing is simple but not easy. No matter how much people are told about buying when markets are going down, they still will continue to panic. No matter how much people are told to stay balanced and not rejoice because markets are going up, they will still continue to rejoice unnecessarily
For example today since the markets went down, I bought more into one of the companies shared by me earlier which will benefit from
Over the years after making mistakes I have learnt a few basic principles which even though might sound simple are not always easy. One of them is it is best to buy when every analyst and reporter is talking about doom.
We do have challenging time with crude oil moving up as well as inflation all across the world charging ahead. But the world has been through more difficult phases and this too shall pass.
God bless you and hope to see all you Happionaires in Bombay this Saturday!