Cohu, Inc. (COHU) Message Board

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Technology Stocks : Cohu, Inc. (COHU)

COHU 23.79

-1.1%

Oct 31 9:30 AM EDT

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To: Johnny Canuck who wrote (7696)	5/11/2024 9:31:26 AM
From: robert b furman	Read Replies (1) of 7822

Hi Johnny, Well then I feel like I'm in good company.<smile> I keep the instagrams the broker sent me in a cabinet right behind my desk. I got so hard headed about getting out of debt I sold AMAT at $13.00 after having them get assigned on some $10.00 puts I sold. I had sold 10 $10.00 puts and only got 600 shares assigned. Those put me in margin again and I SOLD them. Talk about leaving some serious money on the table. SHEESH! I never claimed to be a guru. <smile> No matter how big one's account is, you can run out of money. A person's stock account is such a different emotion creator. When a stock gets cheap it fosters fear - it should be joy because it just got more affordable. When a stock advances it creates greed. A margin account makes the fear factor go up exponentially. The broker can decide to liquidate your account. Then when you have less equity, they need to sell $3.00 of stock to drop your margin account by $1.00. My retirement really changed how I invest. I've never been so comfortable with my account. I originally had a 50/50 barbell. 50% semis and semi equipment and 50% dividend aristocrats. As the semis went up in price, I sold out and sold puts on dividend aristocrats hoping to get them assigned. I took me years to get a portfolio invested in dividend payers. When I sell a put on a dividend payer, I accept that either event is a positive outcome. 1) Keeping the premium from selling the put, 2) or better yet getting the stock assigned and enjoying a lifetime of dividends coming into my account. Since I've adopted that approach, the only time I get a stock assigned is if the expiration coincides with a general market dip. To get a larger premium, I sell the put sometimes out in time more than a year. I really have no clue whether the market will be up or down upon expiration. It's really almost luck. When you learn to want and appreciate the dips as opportunistic buying events, you have your head screwed on correctly and there is no fear in the equation. When an account grows by dividends plus put premium that decays with time, it compounds so much faster. I swear it is what annuity companies do! Safe compounding made Berkshire what it is today. I got a tickle out of Warren Buffet when he was asked: With all of your wealth what do you want to to do with your life now? His response was: "Live to be the oldest man on earth! With 180 billion in cash he's compounding like no one else in the world! Bob

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