your local stocks portfolio

Re: your local stocks portfolio

Postby zenaudio » Thu Oct 16, 2008 8:03 pm

Someone forwarded this to me...
Subject: A quick guide to understanding the stockmarket : Short Selling

Once upon a time, in a village, a man appeared and announced to the villagers that he would buy monkeys for $10 each. Seeing that there were plenty of many monkeys around, the villagers went out to the forest, and started catching them. The man bought thousands at $10. As supplies of monkeys started to diminish, the villagers ceased their efforts. The man then announced he would now buy at $20. So the villagers renewed their efforts and started catching monkeys again. Soon the supply of monkeys diminished even further and people started going back to their farms. The man increased his offer to $25 and the supply of monkeys diminished to the extent that it was an effort to even see a monkey, let alone catch one. But the man now announced he would buy monkeys at $50! However, since he had to go to the city on business, his assistant would now buy on his behalf. In the absence of the man, the assistant said to the villagers: "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $35 and when the man returns from the city, you can sell them to him for $50 each." The villagers thought that was a great idea so they collected all their savings and bought all the monkeys.

They never saw the man nor his assistant again. But they had plenty of monkeys.

Now you have a better understanding of how the stock market works.
User avatar
zenaudio
Fanatic
Fanatic
 
Posts: 2038
Joined: Sun Aug 17, 2003 9:34 pm

Re: your local stocks portfolio

Postby pigdog » Thu Oct 16, 2008 8:38 pm

well said! :D
User avatar
pigdog
Master
Master
 
Posts: 3413
Joined: Tue Nov 08, 2005 8:39 pm
Location: munchkin land

Re: your local stocks portfolio

Postby Kogarashi » Thu Oct 16, 2008 8:53 pm

zenaudio wrote:Someone forwarded this to me...
Subject: A quick guide to understanding the stockmarket : Short Selling

Once upon a time, in a village, a man appeared and announced to the villagers that he would buy monkeys for $10 each. Seeing that there were plenty of many monkeys around, the villagers went out to the forest, and started catching them. The man bought thousands at $10. As supplies of monkeys started to diminish, the villagers ceased their efforts. The man then announced he would now buy at $20. So the villagers renewed their efforts and started catching monkeys again. Soon the supply of monkeys diminished even further and people started going back to their farms. The man increased his offer to $25 and the supply of monkeys diminished to the extent that it was an effort to even see a monkey, let alone catch one. But the man now announced he would buy monkeys at $50! However, since he had to go to the city on business, his assistant would now buy on his behalf. In the absence of the man, the assistant said to the villagers: "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $35 and when the man returns from the city, you can sell them to him for $50 each." The villagers thought that was a great idea so they collected all their savings and bought all the monkeys.

They never saw the man nor his assistant again. But they had plenty of monkeys.

Now you have a better understanding of how the stock market works.


Cool! Thanks for sharing. I vaguely remember something similar from a 'Wallstreet' book but instead of monkeys I think flowers or orchids?
User avatar
Kogarashi
Citizen
Citizen
 
Posts: 395
Joined: Wed May 14, 2008 8:27 am

Re: your local stocks portfolio

Postby dimfer » Thu Oct 16, 2008 9:06 pm

have you guys moved/shifted your investments yet?

somebody must be laughing all the way to the bank with this wild roller coaster ride.

my 80 yr old mother sure looks much smarter than me these days - she got all her money on GIC - with interest rate almost lower than inflation rate - she hasn't lost anything :devil: I lost - a fair bit.
dimfer
Fanatic
Fanatic
 
Posts: 2428
Joined: Sun Oct 17, 2004 1:33 pm
Location: Bozania

Re: your local stocks portfolio

Postby pigdog » Thu Oct 16, 2008 9:48 pm

tongson wrote:
zenaudio wrote:Someone forwarded this to me...
Subject: A quick guide to understanding the stockmarket : Short Selling

Once upon a time, in a village, a man appeared and announced to the villagers that he would buy monkeys for $10 each. Seeing that there were plenty of many monkeys around, the villagers went out to the forest, and started catching them. The man bought thousands at $10. As supplies of monkeys started to diminish, the villagers ceased their efforts. The man then announced he would now buy at $20. So the villagers renewed their efforts and started catching monkeys again. Soon the supply of monkeys diminished even further and people started going back to their farms. The man increased his offer to $25 and the supply of monkeys diminished to the extent that it was an effort to even see a monkey, let alone catch one. But the man now announced he would buy monkeys at $50! However, since he had to go to the city on business, his assistant would now buy on his behalf. In the absence of the man, the assistant said to the villagers: "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at $35 and when the man returns from the city, you can sell them to him for $50 each." The villagers thought that was a great idea so they collected all their savings and bought all the monkeys.

They never saw the man nor his assistant again. But they had plenty of monkeys.

Now you have a better understanding of how the stock market works.


Cool! Thanks for sharing. I vaguely remember something similar from a 'Wallstreet' book but instead of monkeys I think flowers or orchids?


interesting that you mentioned flowers, there is something related to that and that is the Great Tulip craze which resulted in a major bust, i think in the 18th century
User avatar
pigdog
Master
Master
 
Posts: 3413
Joined: Tue Nov 08, 2005 8:39 pm
Location: munchkin land

Warren Buffett Speaks

Postby pigdog » Sat Oct 18, 2008 9:48 pm

User avatar
pigdog
Master
Master
 
Posts: 3413
Joined: Tue Nov 08, 2005 8:39 pm
Location: munchkin land

Re: your local stocks portfolio

Postby zenaudio » Wed Sep 23, 2009 10:34 pm

zenaudio wrote:I wonder if buying now (equities) would look smart 2-3 years down the road. ;)


Hindsight is always 20/20 vision.

Now if you look at the PSE chart:
http://www.pse.com.ph/
October 08 was indeed the bottom and, after a long bottom, the index has climbed 50% since March 09.

The question -- is this a sustainable rally?
User avatar
zenaudio
Fanatic
Fanatic
 
Posts: 2038
Joined: Sun Aug 17, 2003 9:34 pm

Re: your local stocks portfolio

Postby zenaudio » Tue Oct 06, 2009 9:29 pm

User avatar
zenaudio
Fanatic
Fanatic
 
Posts: 2038
Joined: Sun Aug 17, 2003 9:34 pm

What should be your local stocks portfolio?

Postby Oldfogey » Sat Apr 10, 2010 1:37 pm

Last entry here was eons ago. Local stocks are at 52 week highs, are there any worth acquiring at their present prices, to hold on to for the medium term, say 5 years?
Oldfogey
Moderator
 
Posts: 613
Joined: Mon May 19, 2003 5:04 pm

Re: your local stocks portfolio

Postby dimfer » Sat Apr 10, 2010 7:50 pm

as Warren Buffet said lately, "when it is raining gold, don't reach for a thimble, grab the biggest bucket". obviously these guys grabbed a drum during the turmoil in the financial market judging on how their net worth increased during the past year.

and yeah, my mom did much better than me. somehow, our financial advisor convinced her to invest $30,000 of her money in a portfolio that will yield her at least 75% at the current situation. This advisor invested aggressively herself, she remortgaged her house for $400,000 and invested all her money when TD Canada Trust shares dipped to $36 (from highest of $76 before the market went sour)... now, TD shares are trading at above $74 again. she doubled her money in less than a year. She said she will cash out the day it reaches $80 and retire.
dimfer
Fanatic
Fanatic
 
Posts: 2428
Joined: Sun Oct 17, 2004 1:33 pm
Location: Bozania


Re: What should be your local stocks portfolio?

Postby muypogi » Thu Sep 09, 2010 9:01 am

Oldfogey wrote:Last entry here was eons ago. Local stocks are at 52 week highs, are there any worth acquiring at their present prices, to hold on to for the medium term, say 5 years?


Yup, if you don't mind a possible up and down movement come 2011 to 2012. . . Assuming P-Noy does just half of what everybody expects him to do, Phils market should continue to do well.
muypogi
Fanatic
Fanatic
 
Posts: 1794
Joined: Tue Feb 27, 2007 11:05 am

Previous

Return to BUSINESS MATTERS

Who is online

Users browsing this forum: No registered users and 1 guest