Wednesday, June 20, 2007

Everyone is making $ from the stock market?


True or False?
To many, it is very true.

You will hear everyone talking about "which counter is going to go up tomorrow" or "you make how much hah?" all the time everywhere ie. in coffee shops, hawker centres etc etc.

If everyone is making money, who is losing money?
It can't be nobody is losing money.

So who?????
Answer - The last person/people holding the baby (ie. the shares) is/are the losers.

How could it be true?
Mr A buys at $2 and sells to Ms B at $3.
Ms B sells to Mr C at $4.
Mr C sells to Ms D at $5.
Ms D sells to Mr Edgar at $6.
The market crashes. Share price drops to $2.
Mr Edgar held on the $6 share and after five years, he is praying for the share price to recover.

3 comments:

Anonymous said...

wat you think about hobee investment

Edgar Wong said...

Frankly, i don't follow the counter.

But a quick peek at its announcements on SGX tells me that Ho Bee is big player on Sentosa.

In the last 4 months, 2 major en-bloc acquisitions. One of which is at friend's place of Elmira Height.

The current share price level is at a relatively new platform.

Anonymous said...

hi edgar,

do you know about warrants??