RE: Investing in the stock market! [Simple Guide]

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Investing in the stock market! [Simple Guide]

in investing •  7 years ago 

But do you buy them ten years into a bull cycle?

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If you liked them at one price why not like them even more at a cheaper price. Till the fundamentals of the company change and deteriorate from bad management and bad deals price month to month, quarter to quarter, even somewhat year to year is sorta irellevant and short term thinking. That's fluctuations of the market overall not the company. And the market will always go up then down then back up then down. So plan for the inevitable down to buy more good companies but don't ever think it won't continue up or come back up. Stay invested.

Exactly you buy the COMPANY not the stock (yes I mean you physically own the stock but I am talking why). You don't own a piece of paper that is worthless you own a share of a company that generates profits. That is why despite Ford (F) stock not going up for the last 2 years I have not given up on them! 6 PE and 5.5% yield while they automate their plants sounds like a good deal to me!

I buy every chance I get and use a put-write strategy if the markets are too high to either earn a return off the premium paid or buying the stock at an adjusted price relative to the current market prices. Either way over a 10-50 year cycle it tends to not matter if you are buying in good companies.