What is Your Buy-in Price for XYZ stocks?

A reader dropped me an email
to enquire about my “buy in price” for two REITs counter I owned –
CRCT and FCOT.
My reply to her as follows. 

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Hi M, 

Thank you for reading my blog and I appreciate your email too. First of all, I
apologized that it is perhaps not going to be the straight forward answer you
are looking for, as you read on. 
I am not secretive about my buying price, but
worries stem from misleading message transmitted to readers, if only the buy and
sell price is the target of interest.

Wisdom and Knowledge

One purpose of my blog is to convey financial
literacy to the readers and to continue learn/improve myself too. This includes
the art of valuing a company and the development of a philosophical mind, which
possibly is even more beneficial for investing. I believe that the better
you can think, and the more exposures you have in life, the wiser you become.
This wisdom is needed for us to assess the market better. Then together with
the technical knowledge you acquired from books in valuing a company, you can
then beat the market and compound your returns. There is no short cut from
investing. Even if you do gain from a shorter path before, it will be temporary
and one day, your money earned will all be returned to the market pool
somehow. 

Only You Know Yourself Best

Ultimately it will be wiser to value the
companies of interests base on your own knowledge/ judgement, because only you
will know best how you will react to every trade you make. Treat every trade as
sacred for yourself and research as much as possible YOURSELF. Only you
will know how long you will hold before selling, based on your own strategy and
the way you structured your portfolio to suit your needs.

Do Not Take Price From Others as Benchmark

The last info you should take into account to
benchmark or even reference for your investment, is to know what price OTHERS
buy/sell their stocks at! 

For instance you spot a company with very good fundamentals and huge upside
prospect at $2.00. But your close friend bought it at $1.50. Due to the general
tendency of human nature to compare, most people will forsake the idea of
buying into the great company, just because their friend bought it at a lower
price. Or at least they will want to buy at $1.60 or $1.70 and not
$2.00. Hence a golden opportunity may be lost!

Focus on the Fundamentals

Of course, the most important selection of the
criteria is the long term fundamentals of the company. Enough had been said on
this criteria, easy to comprehend but not easy to follow when erratic pricing
starts affecting your emotions!


Yes, until this point if you are still reading, you may think “enough of
crap!” Ok ok ok… what I can say is I bought at prices near to my
blog articles released date as below. 


I sincerely believe the above articles on REITs are more beneficial than just
the pricing I (a stranger) bought at!


Hope you can continue support my blog.

🙂 enjoy your weekend.


Rolf

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3 thoughts on “What is Your Buy-in Price for XYZ stocks?

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