Jean I think the weakness in the late session regarding Microsoft spilled over to Dell when the old garbage from the DOJ started again.
Microsoft Corp. (Nasdaq:MSFT) led tech news today after
announcing an alliance aimed at establishing its position in the
burgeoning market for wireless handheld devices. The software
giant will team with Texas Instruments (NYSE:TXN), the world's
largest developer of semiconductor chips for mobile devices, to
develop improved software for these devices, such as personal
digital assistants (PDAs). Microsoft will use TI's digital
signal processors (DSPs) to enable its Windows CE operating
system that is used in wireless handheld devices. Microsoft
shares edged up 1/2 (+0.49%) to 10
I saw these tonight and thought it would be great if we could have the courage and muscle to adhere to the principles of wealth investing
Here are the 10 biggest
mistakes you don't have to make -- if you want to become a millionaire
yourself:
Mistake #1: Failing to start early. Time is your
best friend. And the more you got, the more
mistakes you can make (and recover from!). But
more importantly -- the longer the magic of
compounding will be working in your favor. We
know that all you have to do is start investing
about $500 a month around age twenty-five and
you'll retire a millionaire in your sixties. Max out on your 401(k). Two
of three Americans make this "biggest mistake" -- they never start,
period. So they'll never be able to retire. Learn from other millionaires,
start today!
Mistake #2: Selling too soon. Sell to 'lock up profits?'
Unfortunately,
new online trading technologies make it all too easy to buy and sell.
"One reason millionaire investors are millionaire investors is that they
don't commit mistake #2 too often." They aren't 'trigger-happy.' So
remember, the online trading gun has a hair-trigger, take your finger
off the trigger. Don't shoot from the hip.
Mistake #3: Selling too late. Okay, if you do
avoid selling too soon, you might also increase
the chances of selling too late? The fact is, folks,
"the odds of selling at exactly the best price are
slim," and "you are never going to consistently
call peaks in stock prices. So don't worry if you
sell late." Remember, "perfection is not a
prerequisite for a seven-figure portfolio." One
key solution, "buy right," buy proven growth
stocks and funds.
Mistake #4: Blindly following the advice of friends, coworkers,
and especially brokers. Morgan Stanley Dean Witter has been running a
great series of ads lately. One shows a couple of women conversing in
a beauty salon, both under hair driers. Message: Be very careful where
you get your stocks tips. Carlson goes a lot further. You can't even trust
your nice, friendly broker on Wall Street, or anywhere else: "Make no
mistake about it, brokers are not investment analysts. They are
salespeople, [they] succeed because they are successful salesmen."
Ignore all tips and "recommendations" too.
Mistake #5: Market timing. Hey, we already know that the average investors cannot time the
market.ÿ They tend to buy at the top, and sell at the bottom, winding up
losers. But will they ever learn? "The biggest risk of investing is not
being in the market when it declines; it's being out of the market when
it advances ... don't buck the odds," says Carlson, "go with the
percentages. And the percentages say timing the market is a losing bet."
Mistake #6: 'Micro' timing stock purchases.ÿ "Sometimes we are our
own worst enemy." Precise buy prices. Limit orders. Forget this rigid
green-eyeshade approach to the market. It's really just another
variation on the general mistake of market timing. "The longer your
time frame, the less risky it is to pay a little more for a quality stock ...
don't nickel and dime your way into the stock."
Mistake #7: Speculating in futures, options, and speculative stocks.ÿ
The vast majority of millionaires learn to never, never, never waste
even five minutes of their precious time on derivatives, futures,
options, puts, calls, penny stocks, gold coins, lotteries, art auctions and
South Sea real estate development deals. Some time ago I wrote a
newsletter about market timing. Like Carlson, I discovered you can't
win. Only your broker wins. The average American investor will lose.
Stick with conservative, boring, growth stocks and/or funds with solid
10-year track records
Now don't make the mistake of misunderstanding our point here, and
conclude that you shouldn't have some of the more speculative
technology stocks and/or funds available. Just remember that today's
millionaires tend to keep the bulk of their long-term portfolios in
long-term securities.
Mistake #8: Reacting to news. Carlson's also got a good sense of
humor: "I'm probably the only professional in the investment business
who doesn't have CNBC, the business television network, blaring in
the background" all day. Oh he's got a tv on, but he uses it to "watch
sporting events." And by ignoring breaking news, he's making better
investment decisions. In fact, "reacting to news on CNBC or any other
financial media outlet is a loser's game." Thousands of Wall Street and
corporate "insiders" are already way ahead of you. So react and you'll
probably lose. Remember, millionaires don't make this mistake.
Mistake #9: Ignoring the 'little things' of investing. "Great coaches will
tell you that attention to detail is what truly matters." A little deferred
commission here, a little capital gains taxes there. Operating expenses
way above average. Excessive turnover. Marketing fees. Trading
costs. "Count your pennies and the dollars will take care of
themselves," said my grandfather. A friend put it this way: In the jungle
(Wall Street), you worry about the lions and tigers, but it's the ants that
end up eating you alive. Says Carlson: "Ignore the little things to your
peril."
Mistake #10: Buying 'cheap' stocks that get cheaper, and cheaper and
cheaper and ...ÿ "Everyone wants to find the next great 'crash stock,'
the stock that goes from $2.00 to $200, the next Chrysler." But
millionaires learn they are "not very good at picking crash stocks that
rebound." You're betting that you got information superior to the rest
of Wall Street. That's a joke. Experience has taught the average
millionaire that bottom-fishing for speculative turnaround stocks is a
loser's game. This is another reason to stick with solid growth stocks
and funds. And forget about market timing.
Avoid these 10 mistakes -- become a millionaire!
Only one in three American investors are on track toward a
comfortable retirement. They are planning for it now. Carlson's book is
an excellent reminder of some of the basic strategies millionaires use to
get to be millionaires. And like any game plan, your best offense may be
a strong defense -- avoiding the 10 "biggest mistakes" that millionaires
have already learned to avoid. In short, you can learn and profit from
their mistakes, without paying the price. ÿÿ ÿ
Tace Care
Frank |
