OT ** >> Can you describe your trading (investing) philosophy?
Sure. The stock market has evolved into a mechanism to transfer money from some people to other other people. A certain amount of "stupid money" is continuously required to fund the brokers, etc.... That is acquired from the bid/ask spread, and the hourly gyrations of price. I usually don't play that game. That's AD's playground.
I operate my stock investments like a warehouse of goods. I buy what I think will have future demand at a higher price (for the stocks). Pretty much like a village merchant goes to the city to bring back goods his neighbors will want to buy when they have an urge to do so. The merchant needs to anticipate that demand.
I buy into companies that make useful stuff, and can generate a profit doing it. Which I think is obvious from the trades I post.
I don't worry about P/E during abnormal times. Like now. But I like to see a profit even during a recession. I think all my stocks fit this criteria. Except ITWO. Which I bought because I thought it made an essential software program. Now I'm not so sure.
Anyway my current stocks are WDC, Intel, Altera, LSI, Cadence, Oracle, AMAT. I usually also have Xylinx, TXN, and NSM. But I'm out of those at the moment.
My largest mistake is staying constantly invested (like at 99% level). So when prices drop, I can't buy. I have to learn to manage the cash balance. So far, I'm not doing a good job.
Sarmad |
