Investor Expectations Unrealistic?

Quibit · 1 Investor Expectations Unrealistic? Mon Feb 28, 2011 10:50 pm

Quibit

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I believe that investor expectations of over 20% capital gains per month, which is way beyond any equity market could realistically deliver is the main cause for current anxiety and stress.

Should'nt you guys be happy with 100% Return on Investment (ROI), which i am sure many of you have already achieved..

Relax!!!

Gaja · 2 Re: Investor Expectations Unrealistic? Mon Feb 28, 2011 10:53 pm

Gaja

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my requirement is 35 to 40% per year, so after deducting the margin finance cost and other expenses, i will have 20 to 25% per year, which was more than 3 times of risk free investment return, what do you all thing about my policy?

UKboy · 3 Re: Investor Expectations Unrealistic? Mon Feb 28, 2011 11:21 pm

UKboy

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Gaja wrote:my requirement is 35 to 40% per year, so after deducting the margin finance cost and other expenses, i will have 20 to 25% per year, which was more than 3 times of risk free investment return, what do you all thing about my policy?

Greedy new kids will not be happy with a 35% return per annum..
100% return in 4 weeks is their target. If they can't achive that , then they go mad. Very Happy

They all want to become next Dhammika Perera.
These people will eventually kill our market same as in Bangladesh.

Meta Trader · 4 Re: Investor Expectations Unrealistic? Mon Feb 28, 2011 11:33 pm

Meta Trader

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Greedy new kids will not be happy with a 35% return per annum..
100% return in 4 weeks is their target. If they can't achive that , then they go mad. :D
They all want to become next Dhammika Perera.
These people will eventually kill our market same as in Bangladesh.[/quote]

to me cse is a ticking time bomb awaiting to boom courtesy of some invisible hands.i wonder how longer our retailers could hold on this artificial prices , even SEC or any other can't stop this nonsense .

$$$ · 5 Re: Investor Expectations Unrealistic? Mon Feb 28, 2011 11:34 pm

$$$

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Quibi can't agree more....a few years back any return would have been appreciated...this is human nature GREED.

Most new investors have got used to the high return scenario...any thing less than this and investing becomes a rotten Tomato.

It's like when we get used to the Cricket team winning repeatedly one loss is taken with insults to the cricketers , their wives and mothers etc . at the Pakistan sri Lanka match I heard one guy swearing and saying we can't play cricket to save our soles and that we would lose the world cup etc lol.....since we have got used to getting a 100% return in two weeks gaining 30% in one month is not worth it ..... sad in away

Gaja · 6 Re: Investor Expectations Unrealistic? Tue Mar 01, 2011 12:00 am

Gaja

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if everybody can get 100% or more return in a year or before, then do you think anybody start or run any business, with the problems from different stakeholders and if they going to get very low return compare to the CSE Investments

Fresher · 7 Re: Investor Expectations Unrealistic? Tue Mar 01, 2011 7:20 am

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well i think there has been a good increase in the no. of investors over the last year specially with the bank interest rates coming down.
The new guys then had got good returns at that time and are expecting the same to happen continuously all the time. This then led to them )and also CSE) promoting the CSE. Some people had exaggerated this actually like a casino. So they expect it to be like that.
None of the new guys are investing. Just like u guys said, they are day traders or T+5 traders.

We need more investors who study stocks carefully and invest with some logic knowing what the company does. It was so funny when a friend of mine as a reply to my question said TAFL is in TEA business.

Even I started more like a trader but without any credit. I too expected exorbitant gains which I got to a certain extent. But I realised that at that time had I let my money be for a long time without selling, I would have got more. But now, I have been busy so I let my portfolio be, and expect somewhere around 30-40% return p.a

DK · 8 Re: Investor Expectations Unrealistic? Tue Mar 01, 2011 7:27 am

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Agree with you guys on this. Sometime back, my targetted ROI per annum last year was 10% this was when the interest rates were around 5-6%. This was viewed way below the 'potential'. Well it was, when ASI was growing at 10% per month, why stop at 10% per month.

But I have to say the target I picked after that is way out there. My target now is a 5% ROI per month, and that's a LOT. Have I managed to stick to it? Of course not. My total ROI so far for the past 6 months is around 12%. The consolation on the other hand is that I don't have any debts to pay (and that I can hold it for a considerable time) and I am still getting close to twice of the risk free (i.e. FD) rate.

$$$ · 9 Re: Investor Expectations Unrealistic? Tue Mar 01, 2011 11:28 am

$$$

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FYI I can imagine the fast earning effect has on the new investor My return from last December to Now is more than 100% :)

nuwank · 10 Re: Investor Expectations Unrealistic? Tue Mar 01, 2011 2:04 pm

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When there is panic selling in the market, there are real investors like me buying up all the strong companies at a discount. That's why Warren Buffett says that markets are inefficient and that why he makes money in the market. If the markets were efficient, people wouldn't make any money. Companies that are offered at a discount today which no one is looking at, people will pay 50% more for the same company 2 days later????

tubal · 11 Re: Investor Expectations Unrealistic? Tue Mar 01, 2011 2:28 pm

tubal

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nuwank wrote:When there is panic selling in the market, there are real investors like me buying up all the strong companies at a discount. That's why Warren Buffett says that markets are inefficient and that why he makes money in the market. If the markets were efficient, people wouldn't make any money. Companies that are offered at a discount today which no one is looking at, people will pay 50% more for the same company 2 days later????

50% two days? Bah! people who bough WAPO.R at 100 are selling them at 500 now. That's 500% gain in 2 hours. That's exactly what's wrong with the CSE

$$$ · 12 Re: Investor Expectations Unrealistic? Thu Mar 03, 2011 10:48 pm

$$$

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Yeah Tubal that is exactly the case.....crazy

milanka

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Meta Trader wrote:
Greedy new kids will not be happy with a 35% return per annum..
100% return in 4 weeks is their target. If they can't achive that , then they go mad.
They all want to become next Dhammika Perera.
These people will eventually kill our market same as in Bangladesh.

to me cse is a ticking time bomb awaiting to boom courtesy of some invisible hands.i wonder how longer our retailers could hold on this artificial prices , even SEC or any other can't stop this nonsense .
[/quote]

read the same view on a article published today on ft.lk

http://www.ft.lk/2011/03/03/buried-mines-time-bombs-under-stockfinancial-markets/