twister, I respectfully disagree with your interpretation of my remarks. Let me clarify my post. I did not say that my expectation was to achieve 100% returns from my portfolio over 2 years. I said that I would not buy an individual stock that I did not think I could make 100% on in 2 years because of the errors I described that tend to reduce returns. I do not expect to make 100% over 2 years for my total portfolio, nor do I make it.
Having that standard for adding an individual stock excludes a LOT of stocks, but does not necessarily leave me with having to buy pieces of junk. Two examples ON WHICH I HAVE NOT DONE MUCH DUE DILIGENCE are
HRC and EBSC, which have been mentioned here. I can tell you right now that 100% over two years on those stocks is POSSIBLE. However, my job as an investor is to determine how PROBABLE that is. If I do not think the odds are good I won't buy.
I might add that this strategy gives me at least a couple of ideas a month, many of which are not as good as what I own, so I may do nothing, as I also do not believe that you can properly follow a large portfolio of stocks -- which for me means a lot of work, including talking to management by email or otherwise, etc. (My turnover is low, probably too low.) |
