Posted by carries > 2011-09-22 11:06 | Report Abuse

I'm a novice investor, but i disagree. Even in a downturn, you can buy and hold.

In 1998 i used around RM17-18K and bought 1 lot each of 30 penny stocks.
I remained passive for almost 13 years and just left the portfolio alone. (Passive Buy and Hold strategy).

One third of those stocks died (delisted, consolidated etc).
One third did almost nothing (did not appreciate much etc).
One third did very well.
Portfolio value now at current market price is around RM60K.
(This does not include the Cash i received from dividends or the payouts from Amcorp and NSTP etc etc over the last 13 years).

In the last 2 months i decided to finally clean up my portfolio (after alot of nagging from my remiser for the last 13 years).
I sold all the laggards and used the money to switch to the top 100 counters by market capitalisation.
(I did ofcourse pick a couple of riskier counters for some high risk, high gain exposure).
I have never punted & only invest for the longer term and i only use cash to play. (I don't understand the market well enough to punt).

I have almost completed readjusting my portfolio and will soon go back to my Passive Buy & Hold Strategy.

All i know is, is that, even when the market is going down, there are opportunities for small time investors to take advantage of .......

Posted by cpteh > 2011-09-22 22:56 | Report Abuse

Yes, if you have knowledge much ... you wont do what u done 13 years ago. 13 MONTHS is very long for me to hold, unless if gives me DIVIDEND. My ASB is giving me 7%. My EPF giving 5%. My gold giving me much higher return now. Dont count my UT. We diversify our assets, not 30 penny stocks. Allow me to post in the blog and I will argue much more if I have the time. But, again we all have our own way to invest, right? All the best to you.