30 January 2013

Value Investor is not a Long Term Investor: Short note

Personally, I practise value investing instead of long term investing.

Value investing strategy that I practise is to buy undervalued assets, and hold it until it has been over-valued by the market. It can be considered an aggressive or active strategy, instead of passive strategy. It is aggressive because value investors use lots of efforts and time to evaluate and discover potential undervalued assets, then monitor them and take appropriate action from time to time, quarter to quarter, even year to year. In other words, it is unnecessary to "label" an expire date or profit ceiling for any acquisition. As long as it is still undervalued, then there is no point to "cheap sell" it, and vice versa. Thus, the core philosophy of value investing is to evaluate the so-called "value" and then, make rationale decision upon it.

Frankly speaking, I am not familiar with the long term investing strategy. So, it is better for me avoid related discussion. That's all for today. More fascinating articles and sharing will be updated from time to time in Xaivier Blog. So, you are welcome to subscribe our feed, look at our sitemap or simply visit our Homepage for latest sharing.

Written by: Xaivier Chia

(P/S: The above sharing is solely based on personal insight. Please do not take it seriously. However, your valuable feedback are very welcome.)

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