Coffee-can portfolio investment (咖啡罐投资法)
Have you ever doubted your investment style? Should it be long-term or short-term? This question surfaced because we can see in the recent market, that short-term trading can earn you a lot of money, where you buy low and sell high; or even buy on news and sell on confirmation.
If you are having extra money that you will never want to use, that you wish to gain some profit over the years, coffee-can portfolio is the best option for you. So, what is coffee-can portfolio? When we are still young, we tend to save all the money and pennies into a coffee-can, and wish to become a millionaire from those savings. Coffee-can portfolio have the exact same concept of it, except you buy all the shares and keep it for at least 10 years, without touching it.
Some may ask, “what if there is a bear market and all my share prices drop to their historical low?” That should not be problem, as this type of investment make you don’t ever “open” the coffee-can unless you would like to sell your shares and cash out the money. Besides, in order to keep it in the coffee-can, you must select a few good companies with strong fundamental, and a fantastic future. Hence, even if bear market does happen, and your share prices dropped, it will rebound quicker than you even thought of.
In short, coffee-can portfolio allows you to buy a few great companies and store it for years, that in these years, never buy or sell the shares. After 10 years, you will be surprised how much these companies has gained. Obviously, it is near impossible to have all your companies grow, but if your majority holdings grew for 2-fold, 3-fold or more, then it will be a fantastic return in 10 years.
For more EXCLUSIVE information, visit: https://www.facebook.com/InvestingKnowEverything/