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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (52615)	10/26/2013 4:30:22 PM
From: Jim P.	Respond to of 78786

I have found that a cash reserve makes me a better investor. Yes, I buy things that the charts say a better price will come just because I like the risk vs reward. Last week I purchased EMES, a recently to market MLP that is selling fracing sand. Did my due diligence and liked the company and it looked like it would meet my return bar and then some. My purchase price was over double the May IPO price. I think over the next few years that I will do very well baring a major disruption to oil and gas drilling. As far as my dad's account. He has lower returns than mine partly account risk tolerance and partly that he cannot buy some of the things I do because I have cash. His choice is down to sell winners and reinvest the after tax proceeds or use margin and have the head wind of 6 or 7 percent margin debt blowing against his returns. My account is simply to raise cash when something seems expensive and "when there is something to buy, buy it". I also do the few shares on companies that do not fit my investment profile but would like to own. Fun money, taking a flier or what ever term is out there now. I keep it to ridiculously minor amounts of portfolio. I also manage my children's college money. Managing accounts for different time frames and different goals with the same pool of ideas is a great game. I am certain that trying to keep some cash for bargains in general enhances returns for myself and likely most active investors. Jim