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Showing posts from April, 2016

When you should not buy a Stock?

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When a stock price go down, should you go and buy or not? Is it an opportunity or a trap? If you are Warren Buffett follower, you will follow investor style, buy when market crash! However, this come with condition, you must only invest in those company that are solid with some sort of monopoly in their business, where the business will still grow in the next 10 years. If you have identify those five star companies, then yes, market crash is opportunities to buy them. (Some of those company in local Bursa include Ajinomoto, F&N, Heineken, Panamy, Carlsberg, Nestle, Dlady &,,,) In fact, you will hardly find them drop in price. Other than those solid five star companies, there are many others in the market, and once a while you will find something interesting like below chart: One no need to have Degree/ Master to read the chart, the kindergarten kid can tell you, currently  this is down trend stock ! (the above is daily chart, the stock name is Gtronic, listed in Bursa)