Although in my blog I somehow hint that I am doing regular investing, but truly speaking, I have not been doing so in the way I had initially wished for. This is partly due to my prudent nature where I wish to see some returns before I put in more money into the stock market.
However, recently I begin to re-consider again the idea of putting a fix sum per month from my income to invest regularly. This may or may not be a good idea as the general valuation of the stock market can be pretty high now, and it also means that there may not exist enough Margin of Safety for the stocks I buy. Nevertheless, my self argument to this is, I need to put my money to work hard for me rather than staying idle in the bank accounts. I need them to help me to generate more stream of income as soon as possible, and I believe, through averaging, although I may not get the best deal, they should be quite decent enough.
So right now, I need to go back and make a proper plan for it. I will update in my blog when it begins.
when you came late into the game, you have that sort of feeling that you are missing out, and that psychologically puts you in a mood to buy stuff that otherwise you might not buy. that meaning less margin of safety.
ReplyDeleteHi Kyith, maybe you are right. The three stocks I have were only bought in around 2010, right after the great financial crisis of 2008/9. I have been waiting for another crash in order to buy more stocks but yet to see another one coming any sooner.
ReplyDeleteThat day I read about a book about averaging and investment using a fix sum on a regular basis. I think this make sense in my situation, because my main aim is to own income stocks forever, or as long as I could.
Right now I'm still making a financial assessment to see how I can make it happens.
Thanks Kyith for your comment and I hope to read more comments by you. Cheers! :>
Yes, I am supportive of lump sum investment at a better market entry point rather than going through regular investing plan. That's my personal preference to maximise better returns.
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