Black Monday

[minimoke]

Hands up who was actually involved in 87, or the Dot Bomb, or GFC, and what lessons you learnt and will apply now if it unfolds again? I share my lessons every time I mention tightly managing capital, trading momentum and using the charts to monitor sentiment and pick exits and entries.

In '87 I was pretty well totally out of shares having sold them to buy property.

By 2000 (Dot bomb)i had got back into shares and doing nicely. But sold something like half to get into a property development. At this point my net assets were worth twice what they were in 87 and i was carrying a debt /asset ratio of 57%

By Aug 2007 (GFC) I was right out of shares. Sold them along with property development for another property opportunity. By 2008 net assets 7 times what they were in 87. Also for a short while carrying zero debt. Got back into shares in 2009, debt was 31% of assets. Net assets 8 times '87.

Beginning Feb 2018. Still had same shares which had increased 3.5 times in value. Net assets now 10 time '87. Debt ratio 15%

[limmy]

You've done very well.

In '87 I was pretty well totally out of shares having sold them to buy property.

By 2000 (Dot bomb)i had got back into shares and doing nicely. But sold something like half to get into a property development. At this point my net assets were worth twice what they were in 87 and i was carrying a debt /asset ratio of 57%

By Aug 2007 (GFC) I was right out of shares. Sold them along with property development for another property opportunity. By 2008 net assets 7 times what they were in 87. Also for a short while carrying zero debt. Got back into shares in 2009, debt was 31% of assets. Net assets 8 times '87.

Beginning Feb 2018. Still had same shares which had increased 3.5 times in value. Net assets now 10 time '87. Debt ratio 15%

[Valuegrowth]

As I said I expect bouts of volatility in this year not limited for stocks but also for other assets which include commodity. In my view correction should follow bouts of volatility. Those who have experiences will identify winners for 2018 as well. Investors will eye for value opportunities. Despite all type of market gyrations, some long term investors have outperformed the market by identifying multibagger companies in advance.

NZ market fared well when compare with DOW and other markets. Dow has rebounded somewhat. Those are short term events. Long term is different.

[iceman]

"If you had a chance to buy into a good company in your hometown … and you knew it was a good company and knew good people were running it, and you bought in at a fair price, you wouldn't want to get a quote every day."
Instead of frequently checking a stock's price, "you'd look to the earnings and dividends over the years as determining whether you made a good investment or not. And that's what people should do with stocks."

WARREN BUFFETT

[winner69]

"If you had a chance to buy into a good company in your hometown … and you knew it was a good company and knew good people were running it, and you bought in at a fair price, you wouldn't want to get a quote every day."
Instead of frequently checking a stock's price, "you'd look to the earnings and dividends over the years as determining whether you made a good investment or not. And that's what people should do with stocks."

WARREN BUFFETT

Totally agree

Just shows that we are essentially punters on Sharetrader rather than investors

I didn't look at stock prices much yesterday but had a good day on the TAB -- managed to back four winners (and one loser that fell over had to be put to sleep) and made heaps. Rosie Myers was in good form and that helped


A bit like the sharemarket in a lot of ways - punt on the winners and hope not too many companies fail and have faith in good leaders

[Valuegrowth]

I am constantly looking for strong balance sheet firms, low-debt and zero debt firms which can understand very well trading at a great discount to the market. They are the ones will end up with multibaggers in the mid and long term.

"If you had a chance to buy into a good company in your hometown … and you knew it was a good company and knew good people were running it, and you bought in at a fair price, you wouldn't want to get a quote every day."
Instead of frequently checking a stock's price, "you'd look to the earnings and dividends over the years as determining whether you made a good investment or not. And that's what people should do with stocks."

WARREN BUFFETT

[minimoke]

"If you had a chance to buy into a good company in your hometown … and you knew it was a good company and knew good people were running it, and you bought in at a fair price, you wouldn't want to get a quote every day."
Instead of frequently checking a stock's price, "you'd look to the earnings and dividends over the years as determining whether you made a good investment or not. And that's what people should do with stocks."

WARREN BUFFETT

Good local companies go bad. Cash gets tight and GST / PAYE not paid. Inventory mounts up. Accounts lady nicks the cash. I reckon it still pays to keep an eye on it.

[Cool Bear]

In '87 I was pretty well totally out of shares having sold them to buy property.

By 2000 (Dot bomb)i had got back into shares and doing nicely. But sold something like half to get into a property development. At this point my net assets were worth twice what they were in 87 and i was carrying a debt /asset ratio of 57%

By Aug 2007 (GFC) I was right out of shares. Sold them along with property development for another property opportunity. By 2008 net assets 7 times what they were in 87. Also for a short while carrying zero debt. Got back into shares in 2009, debt was 31% of assets. Net assets 8 times '87.

Beginning Feb 2018. Still had same shares which had increased 3.5 times in value. Net assets now 10 time '87. Debt ratio 15%

Wow. You are indeed a master at reading and timing the market!!

[Mickey]

Just cannot see any market volatility affecting my dividend income stream. If the stock market plummets, which I think is most unlikely, I will be once again presented with the best across-the-board buying opportunity I've had for a long time.

Good advice. I used this as an opportunity to rebalance my portfolio by selling off a couple of smaller holdings and to increase my holdings in another while the price was a bit softer. Based on buy prices, I've now got an average of 7.10% in dividend payments, which I'm happy with.

[minimoke]

Wow. You are indeed a master at reading and timing the market!!

I cant claim that at all. Simply that different opportunities come up at different times and those were the choices / decisions made at the time. At times I have dodged bullets, a few years back with Pike River, the other day with Fletchers. But I built a new portfolio Nov 2017 and what happens - market crashes in Feb. Doesnt worry me though as not near stop losses.