Fallope's learning curve could be very important to 'value' investors. My guess is that a lot of injured stockmarket players learned that the secret to investing is getting out BEFORE the bubble bursts. And that's what they're going to try to do in the present market.
I guess that I learned the opposite lesson because my largest position (after cash) is BRK.b. My cheapest b's (1366) were bought on the day NASQUACK peaked. I can't bear to part with them, but then again I can't part with those I bought @2000 last year.
I actually have been rebated cash from brokerage houses, but that's because I'm cheap, and I pound the table. In any case my commissions are so low that they are lost in the noise. I've only benefited from analyst pumping and dumping because it helps move the prices from fair value. I can't complain.
IMHO, the little guy has a great advantage most of the time. I can slowly accumulate small, thinly traded mispriced stuff that never reaches the radar screen of the big guys. I've blown off my share of fingers in value traps and scams, but overall the last 3 years have been very, very profitable.
Don't know about the next 3 years, hence my transition from margin a year ago to cash now. For the last 4 months my thin gruel has consisted of a few MA's, cash-outs, CanRoys, and occasional out-of-the-money puts.
So now I'm down to the likes of BRKB, WSC, WPO, MCO, VUL, etc. Most have huge gains. Why would I want to do anything but buy and hold? I don't need the cash. I'm happy with the underlying value. When I sell, I tend to not buy back in. And I don't feel like paying the taxes.
So I shouldn't hold CMX bought in single digits? I should pull the rip cord on NIAG bought under 2? How 'bout TARR with a cost basis of a few pennies?
Po'taa'to, Po'tah'to: you call 'em trading vehicles, I call 'em fractional interests in businesses.
Good luck |
