My experience in buying good stocks but losing money

Jo Tan
2022-05-16

You know I've held the honour of holding great stocks like $Google (drop of $280 per share), $DBS (drop of $5 per share) and $OCBC ($1 per share). But alas, I've come to learn that even if you pick a good stock, I will still lose money? I've learnt that I've picked these stocks at the wrong time where I bought them at the peak.

I've come to learn that although Benjamin Graham says not to time the market and to buy a stock but ignore its price, he also mentions to watch for the cost. I am still learning to understand P/E ratios and to listen/read about the profitability of the company.

In my learning journey, I've also come to learn that one must observe the surrounding market conditions. As a naive newbie who bought $DBS GROUP HOLDINGS LTD(D05.SI)$ at it's peak, I feel that I should have anticipated and sold when I heard about the war and the recession. I often wonder, how do you time the market, without timing the market?

But I remind myself about investors who got in at $18-21 and I ask, surely they started from somewhere?

Then I realise that the next I need is time for the stock rise. I guess those who previously bought it at $18-21 in 2020 at its peak asked themselves the same questions then.

I am currently my savings so as to be able to have more time for the stock to eventually recover and hopefully reach new heights. This discipline of setting a fixed allocation each month is important and something I intend to adopt over the long run (I've been investing for 5 months now).

In the Intelligent Investor, Benjamin Graham highlights that the average investor held the stock for 3 years in 1970. In 2002, the holding time was reduced to 11.4 months.

For me, I am committed to test the theory that holding works. Will it work? I don't know but I'll let you know when it does (or doesn't).

That's my sharing for today!


@TigerStars@CaptainTiger

My Investment Experience
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Comments

  • Serene70
    2022-05-18
    Serene70
    I don't invest much in stocks as I always believed that there's too much manipulation. I invest in short term alternative business assets with stability and security.
  • gme1xxx
    2022-05-18
    gme1xxx
    You would be surprised that in 2022 average holding time has already reduced to 3mths (Reuters calculations based on New York stock exchange data for U.S. shares)

    Try to keep up Buddy!Cheers! [Happy]

    • Jo Tan
      lol I didn't know that
    • gme1xxxReplyJo Tan
      we're learning new things everyday buddy. it's something new for me too. I searched on it after reading your article. [Happy] [Like]
  • BLsince2020
    2022-05-18
    BLsince2020
    Hold on to the good companies! As WB said, it's better to buy a good company at fair price than to buy a fair company at good price.
    • Jo Tan
      nice I'll remember that
  • Maky
    2022-05-18
    Maky
    Investment is a journey. We all try to buy low sell high. Sometimes although we plan to hold certain shares for short term, we end up as long term investors.
    • Jo Tan
      thanks for the advice
  • Oldhead
    2022-05-18
    Oldhead
    Good stocks would come back over time. Be patient and don't panic into selling.
    • Jo Tan
      thank you for the advice
  • CY Tan
    2022-05-18
    CY Tan
    Buy at the peak is hard to revrrse fortune unless have the opportunity to do price averaging at the low and wait for a longer term.
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