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Strategies & Market Trends : Analysis Class for Beginners

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To: Arthur Tang who wrote (1130)2/28/2000 3:10:00 PM
From: Arthur Tang  Read Replies (1) of 1471
 
Why long term investing is for everyone?

When you invest in the best company in the industry, you know it is going to be solid investment. Second best is also worthy of investing all your spare money. Would you sell them using microTA? May be? No is the answer. Because if you make a profit and have to pay income tax and then gamble on the re-entry point to buy back the stock; you would be taking too much of a gamble.

The other way is to invest in an industry, a whole basket of investment. Some of the companies will be the anchor, the rest will be low priced high flyers that may have a good move later.

Some of us do long term investment in fallen angels, specifically with a guiding angel on their side. The reward for 30,000 share investment had made a few millionaires. The waiting is long and risky. And you better hope for a sustained booming economy.

Which ever you choose, depends really on your income. Every investment is based on percentage of gain. If you only have small nest egg then fallen angels and lots of luck is the only the way to invest long term. Look at Tang Fund on the SI board and see the theory behind such investment.

Good luck on your long term investment in equity.
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