Tuesday, July 14, 2009

Heed the advice of these Da Ren

It has been a long while since I last talk about investments. With the great destruction of wealth in 2008, few with no vested interest would like to touch on investments. Who wants to be blamed for causing further hardships to investors, or creating personal bankruptcies?

Wise words are usually far and few in between.

When a Da Ren (Great Man) gives advice, small investors like us have to take heed.

In October 2008, during times of great uncertainty, Warren Buffet, the Oracle of Omaha, advised American investors to invest in US shares, with their own money.

In early April 2009, Li Ka Shing, the Superman of Hong Kong, advised HK investors to buy shares as they were cheap. About two months later, after the Hang Seng Index had rebounded 50% or more from its March lows, he advised investors to dispose of the shares as the investments were getting expensive.

Understand what has been advised by the two Da Ren and take heed of their advice; since most may not know what is going to happen in the next six months up till the next Chinese New Year.

Even if you think you count amongst those who foreknow the future, try not to be too clever. Those are sagely advice for all investors.

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