I got a question on a discussion forum, about Long Term Investing. I found the line of thought very interesting, and my reply is in the form of the Seven Steps to Long Term Investing Success !!
So here goes. (thanks Srini and Musa). ..
First the Question
Need some advise.
I intend to invest some X amount in some select stocks with a holding period of about 8-9 years.
Is it good to leave it untouched till the end of holding period? Or is it advisable to set some yearly target say 20% or so and exit once the target is achieved in a year and wait for some lows to happen to reenter the stock for a target n exit once again and continue this cycle till the end of Holding year.
I don't know how the above approach of mine sounds, but need you to give me some thoughts on how to go about it.
Here's my Answer.
The Seven Short Steps to Long Term Investing Success
This is a pretty good question.
The investing process I feel you should follow is:
Thats it !! I guess many years of investing have helped me give a short and sweet answer.
Sorry for generating Option 3 compared to 1 or 2 asked by you, but this is my recommended approach.
Here's to your investing success.
(needless to say, revert to me if you need help with choosing stocks, monitoring and review )
Regards, Punit Jain
Bangalore, Founder, JainMatrix Investments
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