Tuesday, 1 September 2015


You will hear the common refrain from some gurus or bloggers who write about the stock market and financial issues locally, especially when markets are roiled:

The stock is undervalued, nibble some.

The stock is trading below NAV, buy some.

Dollar cost averaging/value investing is the way to go. 

Buy regularly, every month/quarter/half a year.

I do not disagree at buying. But at the rate that they are urging you, you will be eaten up. Soon enough.

The net effect is obvious. 

Keep buying. Keep churning brokerage. Keep fees coming. Keep the brokerage firms going. Keep your broker employed. 

By the time you are done nibbling at ST Engineering so many times from a recent 6-month high of $3.80 to a low of $2.80, you are all negative from the fees paid to your brokerage.

You know what to do the next time someone urge you to nibble, or tell you they have been nibbling some.


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