Biggest mistake when buying shares

  • Thread starter Thread starter Daily Investor
  • Start date Start date
Buy and sell immediately!

Secondly speculating!

Buy and keep for 5 to 10 years at least
 
There's a difference between buying a stock because it's cheap and buying into a well managed business that is undervalued by the market.
 
zerocool2009 said:
Buy and sell immediately!

Secondly speculating!

Buy and keep for 5 to 10 years at least
Click to expand...

You cannot just buy and keep. It is gambling. You need to sell out periodically and take the profits and reinvest again. Your shares means nothing until the day you sell it and make a profit. Readjustment of portfolios on a daily or weekly basis is key.
 
From my very basic understanding, you buy shares with money you have hopefully to invest and make money in the hope it goes up in value
Then you sell

I did this with Sasol and Naspers some time ago
Sasol was a quick return over a few months
Naspers over 3 years

During that time, you only stand to earn dividends rights? And is this taxed?

Wouldn't it be better to put your money into the highest interest bearing savings account compounding interest?

I thinking whilst you can only predict a company's future share value and hope for good growth, how would a TFSA perform Vs shares in a company?

I'm trying to understand it all
 
Desig said:
From my very basic understanding, you buy shares with money you have hopefully to invest and make money in the hope it goes up in value
Then you sell

I did this with Sasol and Naspers some time ago
Sasol was a quick return over a few months
Naspers over 3 years

During that time, you only stand to earn dividends rights? And is this taxed?

Wouldn't it be better to put your money into the highest interest bearing savings account compounding interest?

I thinking whilst you can only predict a company's future share value and hope for good growth, how would a TFSA perform Vs shares in a company?

I'm trying to understand it all
Click to expand...

No, you will never make this type of money in an interest bearing savings account.

So, what I do, I know I am buying shares for the long term - 20-50 years. Instead of just leaving it for 20-50 years, on a weekly or daily basis I log into my portfolio. Where I have made $1 and up per share, I sell out, take the profit and buy immediately again with the profits I have made - as there are no fees for me when buying or selling. When in the red, I just leave my shares.

Shares with no growth, I sell out and re-adjust my portfolio.

Sometimes, depending on market conditions, I have to wait 3-5 days or more at times before my portfolio turns green again and I would sell out and take the profits and re-invest again. Also, when in the red, I tend to top up shares whenever I have additional money.

When dividends are paid out I immediately reinvest them in the shares they paid out for.

All my investments are abroad, so I do not have a thing like TFSA's abroad or pension funds. Also, you are limited with how much shares you can own in a TFSA account. My investments abroad are way too much for that to benefit my in any way. Every year I report to SARS, report my dividends and pay what I owe them. It is not a lot of money and my tax payments to SARS are around R13k-R20k a year.
 
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rvZA said:
No, you will never make this type of money in an interest bearing savings account.

So, what I do, I know I am buying shares for the long term - 20-50 years. Instead of just leaving it for 20-50 years, on a weekly or daily basis I log into my portfolio. Where I have made $1 and up per share, I sell out, take the profit and buy immediately again with the profits I have made - as there are no fees for me when buying or selling. When in the red, I just leave my shares.

Shares with no growth, I sell out and re-adjust my portfolio.

Sometimes, depending on market conditions, I have to wait 3-5 days or more at times before my portfolio turns green again and I would sell out and take the profits and re-invest again. Also, when in the red, I tend to top up shares whenever I have additional money.

When dividends are paid out I immediately reinvest them in the shares they paid out for.

All my investments are abroad, so I do not have a thing like TFSA's abroad or pension funds. Also, you are limited with how much shares you can own in a TFSA account. My investments abroad are way too much for that to benefit my in any way. Every year I report to SARS, report my dividends and pay what I owe them. It is not a lot of money and my tax payments to SARS are around R13k-R20k a year.
Click to expand...
You make a couple of interesting points. Would you mind sharing some info on the basis or selection criteria that you use for the shares that you buy into?
 
rvZA said:
You cannot just buy and keep. It is gambling. You need to sell out periodically and take the profits and reinvest again. Your shares means nothing until the day you sell it and make a profit. Readjustment of portfolios on a daily or weekly basis is key.
Click to expand...

Thats my motto. If its clever or not, time will tell. I do understand the first R40000 of profits are free (if you sell)

I am only in buying mode (when bargains pop up)
 
InvisibleJim said:
You make a couple of interesting points. Would you mind sharing some info on the basis or selection criteria that you use for the shares that you buy into?
Click to expand...


I do not have a big portfolio of shares. Last year I adjusted with the following:

The two ETFs below forms the biggest part of my portfolio:

IWM (Russell 2000)
SPY (S&P500)

Then I have the following individual shares

AAPL (Apple)
KO (Coca-Cola)
AMZN (Amazon)
AMD
BRK.B (Berkshire Hathaway)
MSFT (Microsoft)
V (Visa)

Just recently added NVIDIA to my portfolio of individual shares

NVDA (NVidia)
 
zerocool2009 said:
Thats my motto. If its clever or not, time will tell. I do understand the first R40000 of profits are free (if you sell)

I am only in buying mode (when bargains pop up)
Click to expand...

For the biggest part I focus on a very limited portfolio, but I agree, when it goes down, buy more if you can.
 
Lets see, I have a mix of things. (Very diversified).

From endowments, tax free accounts,interest bearing accounts, straight ETF’s, Unit trusts, RA’s... (and them my play account... Easy equities)

One thing I tried, and it works for me, every year I start a new investment. And it escalades 10%. After year 3 I review.
 
The best was that crowdfarming con from Fedgroup lol. Almost 5 years and I haven’t even made anything near what they said lol.
 
rvZA said:
No, you will never make this type of money in an interest bearing savings account.

So, what I do, I know I am buying shares for the long term - 20-50 years. Instead of just leaving it for 20-50 years, on a weekly or daily basis I log into my portfolio. Where I have made $1 and up per share, I sell out, take the profit and buy immediately again with the profits I have made - as there are no fees for me when buying or selling. When in the red, I just leave my shares.

Shares with no growth, I sell out and re-adjust my portfolio.

Sometimes, depending on market conditions, I have to wait 3-5 days or more at times before my portfolio turns green again and I would sell out and take the profits and re-invest again. Also, when in the red, I tend to top up shares whenever I have additional money.

When dividends are paid out I immediately reinvest them in the shares they paid out for.

All my investments are abroad, so I do not have a thing like TFSA's abroad or pension funds. Also, you are limited with how much shares you can own in a TFSA account. My investments abroad are way too much for that to benefit my in any way. Every year I report to SARS, report my dividends and pay what I owe them. It is not a lot of money and my tax payments to SARS are around R13k-R20k a year.
Click to expand...
What platform are you using that does not have purchase or selling fees? Also, what are their monthly / annual fees?
 
deesef said:
What platform are you using that does not have purchase or selling fees? Also, what are their monthly / annual fees?
Click to expand...

I have been with eToro since 2014. The only fees I had was withdrawal fees or when I wanted to take some risks on CFDs. For my share trading no fees at all. Also no account management fees since I joined them. I also had a portfolio with TDAmeritrade, but since they were taken over by Charles Schwab and they decided not to deal with South Africans anymore, I sold all my shares there and had the funds eventually paid into my etoro account. So, for now everything is centralized with eToro.
 
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