Australian (ASX) Stock Market Forum

Amazing visualisation of stock market performance over time, adjusted for inflation

Re: Amazing visualisation of stock market performance over time, adjusted for inflati

So timing is important :rolleyes:...hands up who didn't already know this.
 
Re: Amazing visualisation of stock market performance over time, adjusted for inflati

Pretty cool graph. An interesting point it made was that if you bought after the 1929 crash, expecting the usual cycle, you wouldn't make any money on the investment till after WWII. I guess anyone who followed Rothschilds famous advice to 'buy when there is blood on the streets' would have been pretty disappointed :D.
 
Re: Amazing visualisation of stock market performance over time, adjusted for inflati

I guess anyone who followed Rothschilds famous advice to 'buy when there is blood on the streets' would have been pretty disappointed :D.

Not this time. This time it was not a world wide recession/depression. It was a financial explosion where the financial world was developing into a pyramid scheme of gigantic proportions. Fundamentals of most businesses other than the finance section were still motoring along.

It was as plain to see as any other indication of the future I have ever seen. By picking stocks that were crashing because financing was a problem but the business was sound it was easy to profit. 2009 was the best year ever for me financially. Some "blue chips" became "penny dreadfuls" in the eyes of many, some still are. This allowed the purchase by the hundreds of thousands where in the past a purchase of a thousand was a fair purchase. A good example is CER. Backed with solid realestate and trading profitably but with an SP readily available between 2 and 3 cents. Sold/bought as low as 1.6c. My main buy at 2.6c

Another was LYC. Money in the bank but finance withdrawn that was needed for production plant construction. A promising business with no chance of going to the wall, only development delayed. Sold as low as 8c. Again it was at a price where a hundred thousand or more was easy to buy and hold.

CFE. Again money in the bank (allbeit from a just in time (lucky maybe) sale of an iron ore deposit to a Chinese company) and buying distressed assets for a song.

Then the oil hopefulls at a time of peak oil. ADI selling as low as 5c. A volatile market with two other aussie companies, AUT and EKA with interests in the same oil field. Great trading opportunity for trading between the three as their relative price went up and down.

Think SDL. A dreadful accident where all the board and top management killed in a plane crash. The share price crashed but as I saw it the business wasn't on the plane, management would be replaced and it would soon be back to business as usual. Shares selling at a low of 7c.

2009 was a good year to accumulate shares by the millions. 2010 was the year to compound the value. Opportunity knocked, who answered the door?.

Today; CER 24.5c, LYC $2.29, AUT $2.29, SDL 58.5c, CFE 50.5c :) I hold all these in quantity.
 
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