Buy and Hold really relaxes.
We need to talk about bovespa and about buy and hold.
When I started to invest in the stock market in October 2013 the stock market was at about 47-50k points, nor do I know how that index value is calculated. I had finished paying my AP
And finally free of the 12-year rent that I paid, I was happy after the car was cleared (bought used), was already formed, single, without children, without alimony and so I could increase my contribution well.
I continued reading many books, blogs, websites and articles on stocks and finances, and my focus has always been MORE on stocks, it is incredible the magnetism that markets exercise in some people, I studied Brazil, USA, Singapore, Switzerland and Hong Kong, believe me, there’s a lot of good stuff and a lot of bargain over there too.
People in the blogosphere get very attached to IF (financial independence) and the profitability of the portfolio, is what almost everyone argues, I think a slightly different line, if I wanted to hedge my portfolio would have bought fixed income, is still in Time, but I still do not feel good about it, first because the only thing I think is still worth it is the Treasury Direct for 2035 IPCA +, but the idea of just seeing that money there still does not please me, I like to see The dividends dripping, I know it’s a little bit, but I feel good, I know they yield LESS than the TD interest, but they’re there! If I want redemption and are already on my account, that makes me comfortable.
Investing is this, being comfortable with what you are doing. If you are very worried or nervous or even anxious about your positions and your wallet it is good to review your plan and change something.
The people are making a fuss with the 37-pound bovespa, Petrobrás and Vale melted, as well as other big ones, like CSN and Usiminas, these companies beat up, fucking blue chips from the stock market, they were in all wallets and made lots of millionaires out there, But life is that change, Petrobrás got screwed with the pre-salt, with the price of the barrel falling, with the mafia gang of the PT stealing as if the world would end tomorrow and Vale fell along with the slowing of China. Personal three lessons I learned in life:
DO NOT INVEST IN CYCLICAL COMPANIES.
DO NOT INVEST IN CORRUPT COUNTRIES.
DO NOT INVEST IN THE STATE’S COMPANIES OF THESE COUNTRIES.
Your assets should not be cyclical, but you must continually grow and be invested in things of increasing value. Brazil is a corrupt country, manipulate the currency, indices, steal a lot and this affects you as a citizen and as an investor, TD pays a lot of interest but the R $ REAL melts, what’s the use? Investment is serious stuff, one day you will realize this. Government’s companies from the corrupt country? It may not be lousy, but it will always be bad compared to your private pair. It does not have to be, the public function works less and discouraged, has many more employees than necessary, contracts are fraudulent, there is a lot of Tips, efficiency is less.
Want to see? Compare TRACTBEL with CEMIG, compare BANCO DO BRASIL with Itaú to see. BB the profit almost does not leave the corner, Itaú increases more than 10% every year. Tractebel is a monster company that invests, grows and profits a lot, Cemig state mining company is worsening and indebted, suffering to survive in the hands of a governor little PT.
And the whole bovespa at 37k what is the title of the post? This great downtown stock market.
Well, IBOV is an index within the index has a lot of bad company like Petrobras and Vale. Only these two pull the index very low, the index is a theoretical portfolio of shares of companies listed in the bovespa.
Your personal portfolio may be TOTALLY DIFFERENT FROM IBOVESPA. Then the studies of SITES, ITEMS, BOOKS, ECONOMISTS, ANALYSTS and etc etc etc. You will always see IBOV there, which may have nothing to do with you.
I have never been behind to know which companies of mine are in ibov or not, but I do not have Petrobrás nor Vale, which is already a lot. I have a company that I really like ODONTOPREV and it is not even in the index. So imagine that you are 100% with odontoprev (of course I do not recommend it) but you would not suffer ANYTHING from the downfall of IBOV and the dramatization of the media and political analysts. Journalist and analyst need to write, talk, produce news every day and give opinions in the economy, that’s their WORK.
Do not allow this dynamic to interfere with your plans, stay away from the news, focus on the balance sheets, live your life, work harder to contribute more, do not look at a good company quote to worry about, these good companies tend To continue good, and the bad ones will continue to be very bad (the case of Eletrobrás), it’s no use hitting a knife.
I invest to supplement my retirement, I have 28 companies, every month I have 4-6 dividend payments in my account, today it is little but with the passage of the years it will increase, what matters is that they survive and increase their profits every year At least in a range close to inflation. That’s what it’s like to be real buy and hold, not for anyone, but if you want to be a real one you’re going to have to think like that and avoid common thinking.
The stock market was not made for the weak, nor for the hurried, nor for the agitated, it is as if it were bank saving even, only yields a little more in the long run, or is it or is it injury.
To learn more about buy and hold, read all the books by Peter Lynch (there are 3), Jeremy Siegel’s books and Benjamin Graham books, as well as those about Warren Buffet. He said, buy it to the sound of drums, sell it to the sound of trumpets. The stock market low is the best time to buy mainly for those who are entering for the first time.
This month I made a good purchase of CEMIG, my target with it is 1% of the portfolio and I decided to advance the contribution to take advantage of a good price R $ 4.72 (my average price was R $ 17) or it was in the highest high of last year And now I bought the biggest drop I saw in the last 12 months, by chance, but here I was not afraid of this loss and I did not panic, I had 700 shares at 17 reais and I bought another 1700 shares at 4.72 now I am With 2400 shares at an average price of R $ 8.00.
Did you see the spirit of Buy and Hold?
I took an expressive drop to buy more. It might work, or not …
Anyway, money in the stock market is just the one that you will not need to melt 100%, make your risk control always. The CEMIG board has practically not changed at all, the company is the same, the profits have dropped a bit, but considering the macroeconomics everyone PJ and PF in Brazil are not well, one day the tide changes and resilient investors will benefit, Is righteous. My next purchase is Tractebel and I’m going to make a nice post about it.