Hi Aus,thanks for your megaposts!
Whilst I agree with a lot of your philosophy, I beleive there is also something to be said for some very short term investing. Not as the bulk of your portfolio, but as a 'stake' that you can invest (gamble might be a better word) on stocks that you 'know' are going to do well in the short term (which for me is 1 or 2 weeks)due to special circumstances. These may be things such as impending related IPO< upcoming stock split, momentum, etc. There is a lot of info here on SI about these ttype of opportunities, and often just beeing a week or even a day ahead of the pack is all you need. Seems foolish to turn down the opportunity if its there!
So I've been then taking that money, and putting it into the more 'blue chip' stocks, such as Sandisk, Aol, Level3, QWest. The difficult thing has been retaining enough 'gambling money' to keep doing that without getting all my money tied up in these medium term stocks.
Now my second 'tip' of the week.
Another one that has a good chance of 10 to 20% in the next week or so is Sapiens. Been rising all this week, even on market down days. It has a history of rising then falling back, I've held it for 18 months and will get out at 12 or so depending on momentum, buy back in when/if it goes down to 9 or so. Very good company, solid product, good financials, but overlooked by the market because its not a .com and its too small.
Joe |
