Noticed Nike's bounced today as institutions run for liquid value -
bad on me, but my portfolios are up over 1% today so I'm not
throwing a tantrum, as emotional youngsters like me are prone to do.
I have no gray hairs, but I've noticed something - I monitor about
80 stocks on Yahoo that I like fundamentally for one reason
or another. Every once in a while one will just start falling
or will really light up the screen with a large daily percentage
loss, like INTC is doing. That will cause me to look into it.
And sometimes, one of these stocks will just look like a can't
lose situation. And sometimes, the stock will remain there
long enough for me to do my due diligence. And sometimes,
when I like a stock, I'll actually end up buying it. So missing
out on a lot is part of my strategy.
YUM, SJP, BMC, MSA, PHSYA, ELAMF, DSWLF, and TBR were all values
found by being patient and waiting for my price. And they've
proven solid so far - more my strategy than the stocks
themselves, I presume. HYDEA is the only one that I didn't
have to wait on since it'd been flatlining so long.
Like I said, I look on myself as young and in an experimenting
phase. I've only been investing now 6 years, and I feel like
it's just in the last two years that I'm seeing a light. I wasted
a lot of money on so-called growth/momo investing - in 1992, my
total return was 14% on over 100 trades with >1000% turnover,
cut to 5% by commissions and then cut again by taxes. And in
1996, I was there sifting through the broken remains of tech
during April-July 96, but bought and sold too early on just about
every stock I had. I moved to value investing just under two years
ago, if that - my summer 96 foray into tech was a first
experience. Recently I incorporated a 10-stock goal concentration
for my portfolio, which I like a lot. Can I be overdoing the
patience-on-the-buy thing - another newish concept for me? We'll see.
But I took the 10-stock goal from statistical studies re: risk,
and I'm taking the waitnsee approach from Buffett. I'm not
presuming to re-invent investing.
I am reading every reasonable book on investing I can
find. I've just finished Mike Murphy's tech stocks book -
my biggest frustration has been an inability to value tech stocks,
so I'm trying to correct that. Based on his methods, techs are
way overvalued as a group, but there may be individual values.
I don't agree with everything he says, but overall he is
a long-term investor looking for values. I liked the book.
Good Investing,
Mike |
