Quite often, we 'label' our decision as 'panic sell' if the market price of the business we sold is higher than the price we sold; and 'panic buy' if the market price of the business we bought is lower than the price we paid. In short, we simply blame our emotion that caused us making such a silly decision, don't you?
However, if we think about this matter again, very quickly, we discover that nobody can always buy with the lowest price and nobody can always sell with the highest price. It is true simply because nobody knows who is the last person who sells with the lowest price or buys with the highest price.
Incapable of predicting
Since ordinary person like me is incapable of predicting future, it is pointless to blame or torture ones emotionally. In fact, such so-called "bad decision" always accompany us as long as we are still investing in stock market.
Personally, I only concern about buying a good deal and selling it with a good price. I never aim for the highest selling price and the lowest buying price. As long as the price is attractive, I will take action if my portfolio allows. There should not have such "panic sell" or "panic buy" for an value investors. Because all the decision should based on the valuation of a company.
So, what is the benefit of value investing? Do value investors always sell or buy with the best price? If you still ask this kind of question after readin this post, then you should consult extra-ordinary person. As ordinary person, I do not think we really need "super-nature power" to have good return (10~15%) from stock market annually.
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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.)