A question taken from Tan Chong Koay‘s webinar titled Growing Your Wealth Through PHEIM.
You need to do the research. Since we cover ASEAN, we have researched each country and have over 30 years of data. We single out the high and the low in the charts every year. Looking at the charts covering 30 years, you understand how the economy and market performed.
Every investor wants to buy a share at its lowest price. But, no one can predict a share’s lowest price and when that will occur.
This is where research comes in: when you analyse the company and think it has good management, little or no gearing, it is in an industry that is growing, it has a capable and hard-working CEO, and the price is low historically, you should be prepared to take a bite at the stock at that price. It will be almost impossible if you want to buy only at the lowest price.
In my 46 years in investing, I had hit the lowest only once or twice. So it is hard for you to buy at the lowest or sell at the highest price.