Originally Posted by
Baa_Baa
Just saying, you're not talking to yourself, there are people here and presumably some lurkers and watchers, who 'get it' about investing long term. Acquiring/accumulating on-market and/or via dividends/DRP, when the market decides to underprice the equity and the company spews out profits as additional equity or money to shareholders every 3-6-12 months by distributing profits. The long terms maths on this is indisputable, assuming the company remains profitable.
This imho and observation though, is a very mature investment approach and can take many years for share market participants to get a grip of, especially mentally when their capital value is being destroyed on paper. Those that do though, really don't concern themselves too much about their current capital portfolio valuation as they have no intention to sell, realising either capital profits or losses. They didn't buy to sell, they bought to lock-in a long term income and/or equity accumulation. They accumulate more by buying or reinvesting dividends.
Thing is though, there are probably a lot more people who are really only focused on the share price and especially so when it goes against their buy-in price, i.e. they're under their buy-price and trying to decide whether to lock in capital losses and move elsewhere. The share price watchers who don't or didn't realise they were really just capital traders, and didn't react early will be hurting. So many though don't have any tools to help with when to exit a capital trade (or get in). It's all gut feel, emotional, subject to whim. All they will see is the red number on their portfolio and counting how much the will lose if they sell. Professional traders are a lot more nimble and move early, getting in, or out.
This place is 'Sharetrader' and its legacy goes back two decades, the debate between hard core investors, casual investors, momentum traders, short term and day traders, noobs and experienced never stops.
The thing I like the most about your posts is that you are very patient about explaining the maths of long term investing in sound prosperous and long term companies. Though sometimes a bit rude and dismissive towards people who don't get it, regardless of their reasons, for example, they want the trade, the quick buck, the thrill of a win.
OCA is and has been for me a long term investment, the repeated extreme capital volatility which I never expected over the past few years has been a windfall enabling me to accumulate a much larger position on-market and via DRP than originally intended based on the original capital I had to invest. Personally I have no intention to sell OCA.
I think people should ponder your expose' of the power of free money that the RV's build up (debt to ORA's) and how that is leveraged. It's quite unlike most industries and core to understanding long term investing in RV's.