Selling your car and investing in CSE.

Hey guys I am going to sell my car and go for an upgrade. what about investing money that I get from selling the car in CSE and go for a leasing for the new car. Selling price 2 million and intended buying around 3 million.
Suicidal neeeeeeeeeeeee. I just can't resist this idea although I know its suicidal.....

ipoguru wrote:
Hey guys I am going to sell my car and go for an upgrade.

what about investing money that I get from selling the car in CSE and go for a leasing for the new car.

Selling price 2 million and intended buying around 3 million.

Suicidal neeeeeeeeeeeee. I just can't resist this idea although I know its suicidal.....

Sorry buddy mistakenly clicked the (- rep) I'll correct it by a + rep for your any other post...Sorry again...!

Oki corrected now you are back @ 16 reps...!

Better to give it free to me!

CSE Today wrote:

ipoguru wrote:
Hey guys I am going to sell my car and go for an upgrade.

what about investing money that I get from selling the car in CSE and go for a leasing for the new car.

Selling price 2 million and intended buying around 3 million.

Suicidal neeeeeeeeeeeee. I just can't resist this idea although I know its suicidal.....

Sorry buddy mistakenly clicked the (- rep) I'll correct it by a + rep for your any other post...Sorry again...!

Oki corrected now you are back @ 16 reps...!

Good, you both got +reps from me too.

swarnasana wrote:Better to give it free to me!

tinyman wrote:

Good, you both got +reps from me too.

Thanks

What's the car?

OK, go for it, but invest in Blue chips end of the year you will get 10-20%
your interest charge can be covered by increased price of new car after 5 years

As things are it is SUICIDAL

ipoguru wrote:Hey guys I am going to sell my car and go for an upgrade. what about investing money that I get from selling the car in CSE and go for a leasing for the new car. Selling price 2 million and intended buying around 3 million.
Suicidal neeeeeeeeeeeee. I just can't resist this idea although I know its suicidal.....

Good idea if you think you can earn more than the interest that you will pay for 2 mn leasing. Check your investing history and calculate your rate of return for last six months and the compare it with leasing rate. I assumed the market conditions will remain same as last six months for the duration of your lease.

Your car will value more, keep it. Cars are an investment in Sri Lanka. In other countries it's scrap metal.

Great idea!
You can win! But there are things to consider....
1. You should have enough experience on trading at CSE
2. Even if you have experience you must study carefully about the stocks that you are going to but
3. Do not follow the crowd. Specially rumors.
4. If you are buy in the down market it is the time to buy and if you are buying in the Up trend you should take great effort to select the stock.
5. Make you own strategy and formula to recover your leasing interest without extra profit you earned.
6. Most important thing is that you must drive carefully you new vehicle...to enjoy the benefits from Market as well as your vehicle

Good luck.....

Good idea. - If managed wisely with some luck.

I think you are matured enough in this field to select good shares.

---
Now I tell my story.
21 years ago I bought a Morris Minor for 45,000/- (my 1st car. 1 Sri 1122)
When they announced a good IPO ( not the booby traps like we get these days) I had no money.

I sold my car for 25,000 /- ! (+ weeks of shouting & crying sessions from my wife)

I put the money in the stock market (lucrative IPOs + then secondary) .

withing 4-6 months.I sold the shares for 180,000.00 .
(NDB IPO bought @50 sold @ 200, DOCK rights B @ 10/- S @40/- etc)

I bought a Corolla DX 13 Sri 84xx for 189,000/- one of the favorites among the crowd those days.

Days are gone. Now you may have to think wisely, short-medium term.
Lets hope overall market remains its value. My concern is the interest you pay.

My Second Story:

Last year, I had no car, wanted to buy a one. Least priced basic Japanese model with my choices was about 2.6 million. I bought more comfortable Hyundai Matrix (auto full option) for 1.3m and put balance 1.3m to stocks.
Now I have 1.4m car + 2.5m shares.

( I have to deduct additional cost of 1 lak max per year for higher fuel consumption of Matrix than Toyota)

not a bad idea. Sri lankan car market is ridiculously over priced especially for Japanese vehicles. if you have a luck you can buy better one with the profit. but need luck.

I am also thinking it as a good idea. Some time back i made two fixed deposits for my two kids. But now i am thinking to withdraw money and invest in fundamental shares keeping for a long term for kids as same as FD. Same way i will keep some money in bank for any emergency.

10 years back i started with 50,000 and 8th months later after first trading i almost lost 45,000 from the CSE. While loosing that i learn the behavior of the market for 8 months...then again i invested 50,000 with the balance remaining in the account...for this 10 years time i have gain my capital by 5000% with 10 years experience without withdrawing a cent. I think the success will not come to you..you should go to the success..
it took 10 years time me to learn....about the CSE..still i cannot understand which god is looking after the CSE...
For a win you must work hard and must have little bit of luck!
Good luck!

m2_yapa wrote:10 years back i started with 50,000 and 8th months later after first trading i almost lost 45,000 from the CSE. While loosing that i learn the behavior of the market for 8 months...then again i invested 50,000 with the balance remaining in the account...for this 10 years time i have gain my capital by 5000% with 10 years experience without withdrawing a cent. I think the success will not come to you..you should go to the success..
it took 10 years time me to learn....about the CSE..still i cannot understand which god is looking after the CSE...
For a win you must work hard and must have little bit of luck!
Good luck!

well said bro.In this situation your story most important to me.

selling your car and investing in CSE? i know some people who did so and guess what happened? as a result of market conditions, their investments were falling in value. by this, you're going to lose your only car as well as you'd have to go by bus or a three wheeler. at one point, i was thinking about it as well. but then i disregarded the idea until the bearish market comes to a halt.sometimes it may work you, but all depends on luck. so good luck

i've withdrawn bulk of my PF. and now contemplating where i should invest. i was thinking to start forex with 100k and increase the leverage. that way, if you gain, you will gain to the maximum, or if you lose, your entire investment could be wiped out.

and chinwi, why did you go for a Hyundai MAtrix? no second hand value no . could have gone for a AE100 corolla or sprinter. very reliable, economical cars. even though they are 15-20 years old, still have the looks.

manula wrote: I am also thinking it as a good idea. Some time back i made two fixed deposits for my two kids. But now i am thinking to withdraw money and invest in fundamental shares keeping for a long term for kids as same as FD. Same way i will keep some money in bank for any emergency.

IF you select some best stocks, buy in a time like this where market is in deep down you can forget the investment for sometime.. However, provided that your choice is right, u may have to keep the data on an excel sheet at least and monitor at least weekly for price fluctuations.
If your see the price declining after some time, u can decide whether to sell and book a profit cuz you can always find another growth stock and apply the same theory..
What I’m trying to emphasize is; u just don’t completely forget it as a FD, time to time u gotta check and make sure your initial investment value is safe. Also taking advantages of a volatility situation.

optimistic wrote: and chinwi, why did you go for a Hyundai MAtrix? no second hand value no . could have gone for a AE100 corolla or sprinter. very reliable, economical cars. even though they are 15-20 years old, still have the looks.

I think comfort-ability valued most sometimes, AE100s are also comfortable but a Matrix is more than that I think.. Also age wise u can buy a year 10 years old one for a good price than a 14-16 year old corollas but its arguable the higher wear and tear and the maintenance cost of other vehicles compared to Toyota, still I feel the corollas are aged.. So I think Chinwi my have thought the same way.

comfortability - for that matter, you might as well go for a Volvo S40, BMW 3 series E36, Mercedes Benz W202 or W124. fuel consumption does not differ too much from a matrix. and i would go for an european car than a korean, anyday. that is food for thought

optimistic wrote:
and chinwi, why did you go for a Hyundai MAtrix? no second hand value no Smile . could have gone for a AE100 corolla or sprinter. very reliable, economical cars. even though they are 15-20 years old, still have the looks.

All I tried to tell you is I have recovered the cost of the car.
At the sales place they sold Maruti & Matrix almost same price (2-3 lak difference) , hence i selected a good looking and more powerful Matrix. JN xxxx.
A Corolla with same quality / age was 2 times of that.

I had money to buy a corolla but by not going for it and investing the balance in stocks I recovered the total amount I paid for the car within 1 year. Hence as per my Zero Cost theory , :-) cost of the matrix is now zero.

Actually, now I am thinking of going for a Toyota because I can afford it now - without affecting that much of my investment capability.

This is not to misguide anyone. I do not know what will happen in next 6-12 months.

aha. i got it sorry for deviating from the topic. i think the zero cost theory was certainly achievable during the past 2 years, starting from the 2nd half of 2009. but i'm not very sure about the future outlook of the CSE. zero cost theory is still achievable if one puts their money in to a speculative, illiquid stock and pray that their stock gets manipulated. unless, i think it would take about 1-5 years for a person to generate a ROI of 100% . i have nothing to prove what i say and i may be wrong.

smallville wrote:

manula wrote: I am also thinking it as a good idea. Some time back i made two fixed deposits for my two kids. But now i am thinking to withdraw money and invest in fundamental shares keeping for a long term for kids as same as FD. Same way i will keep some money in bank for any emergency.

IF you select some best stocks, buy in a time like this where market is in deep down you can forget the investment for sometime.. However, provided that your choice is right, u may have to keep the data on an excel sheet at least and monitor at least weekly for price fluctuations.
If your see the price declining after some time, u can decide whether to sell and book a profit cuz you can always find another growth stock and apply the same theory..
What I’m trying to emphasize is; u just don’t completely forget it as a FD, time to time u gotta check and make sure your initial investment value is safe. Also taking advantages of a volatility situation.

Thanks smallville... It is a very good advice ...