I fully understand an appreciate where you are coming from.
What the economists and the analysts are effectively saying from that long spiel in the media is that it will take you approximately 5-20 years to get your money back from "investing" in these shares.
That's fine if that is what some people want. To me, the fundamental concept of putting your dollars into an asset class to generate consistent and continuous returns is an appropriate strategy. I just have a problem calling it "investing" when people are buying stocks with every intention of selling it when there is sufficient capital growth.
If that is the case the best solution is to split 100k into 50 parcels of 2k, and buy 50 mining stocks under 10 cents with the view of holding them on for dear life, until they hit a twenty bagger. You will achieve a FAR FAR more quicker result of doubling your money in under 5 years, just by sheer market sentiment, speculation and luck.
If you are buying BHP at 40 bucks and calling it an investment for the future, and you are selling it at 50 in 12 months and 1 day time to lock in capital gains and a better entry price, you're a trader.
If you buy BHP at 40 bucks and it drops to 20, and you buy a truckload more, and it goes to 100 bucks and you sit there collecting your dividend every year, wishing it was at 20 again so you can buy more - that's investing.
The funny thing with these economists and analysts are that they are constantly using the bank account yields as a comparison of returns, but advocate selling stocks at higher prices in favor of cash when the yields are still superior to bank rates.
That's trading the price. Pure and simple. Takes effort to separate the two mentalities and put them to effect. Warren Buffet does a fabulous job. There are stocks he has bought 40 years ago which he no doubt still holds.
The moment you liquidate your investment because you decide you can probably purchase it back at a cheaper level in a few days, months or even years time - you're in the Jim Rodgers camp.
It's not even the same ball park. It's not even the same game - Samuel L Jackson.
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