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Strategies & Market Trends : Analysis Class for Beginners -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (1129)	2/26/2000 6:10:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

Long term investing? Daytrading is for short term investing. Long term investing is locked in when the process of lowering the cost per share is successful. ie., Ford foundation has 20 million shares of Wal-mart stock at a cost of $1/share. The shares of the stock is locked in, selling them would have serious tax consequences. How do we plan a long term investment in any stock? We have to do it in several ways. First, to pick a stock which will stood the test of time. AT&T, GM, GE, and others who are not technology dependent. You have to buy weekly in small amounts directly or buy at the dip. Over time, the appreciation of the stock by long term charts, will show you the cost vs. price investment. Lowering cost due to appreciation of the stock is easy to make investment. The other way is to buy the stock at the time the company has a reverse of fortunes. GE had a problem with KIdde Peabody. GM had lost market shares. AT&T was down to $16/share in the late 1980s, before they spin off Lucent in the middle 1990s. Then there is the possibility of stock splitting when you buy into the stock. Subsequent splits will create wealth and lower the cost of the shares you bought. These are all interesting long term investing strategies. No daytrading needed.