Sometimes I will come across an article that will inspire a post. This is one of those types of articles. One of the advantages of AAII is that they send you updates weekly. Recently they posted something that I knew about, but that should give every individual investor pause. Most Actively Traded Funds Underperform Index […]
After listening to the noise, er, Financial bobble heads, I have often thought, wouldn’t it be great if someone recorded what these idiots said and then held them to their predictions. Well it turns out their is a place that has at least partially granted my wish. It is called CXO Advisory Group (Yes, I […]
This is really the third in the series of Investing 101, the second of which discussed setting up a Small Investor Portfolio. But the title would have been too long if I left all that in. As value investors we are not just interested in value of our stocks but the process in which we […]
As yesterdays post on TGAL shows you, we all make mistakes in investing. The question isn’t whether we will make mistakes but how we respond to the mistakes we make. My response was to sell by position in TGAL this morning. Yesterday’s press release with Q3 financials changed my valuation of the company substantially, from one having a comfortable margin of safety, to one with none. Given that TGAL was also losing money made selling at a loss a cinch. I sold at $1.20/share plus $4.95 commission for a loss of $85. Be clear. I am not saying the stock will continue to go down. But the valuation proposition changes so much that it no longer looked like a good investment. When that happens, even if it is only after a matter of days. I sell. I am not in market to hope a company recovers. I am about preservation of capital first, then appreciation of capital. The important thing is to move on.
I promised a couple of readers a version of the DCF Spreadsheet I use to help evaluate long term picks. I decided to offer it to anyone who can use it, i.e. Mac users only. Remember, if you use the free DCF spreadsheet do not base any investment decisions solely on a spreadsheet.
even within the value investing community there are different notions of how often real investment opportunities arise. Buffett has said you should only swing at a “fat pitch.” I loathe baseball, but think the advice is smart nonetheless. To me investment opportunities should be Great investment opportunities. If you can’t find anything looks like a great opportunity, you shouldn’t invest in anything.
I am going to harp on the theme that all is not great in the stock market. I saw this piece in the Inoculated Investor that warns about what I have been hinting at that the current stock market as a whole is overbought. That is too many people bidding up stocks.
Perhaps you took my advice in yesterdays post about using the Graham Investor NCAV (Net Net) screener. What do you do with all those names? I start with the best discount to Net Current Asset Value. The bigger the discount, the bigger the theoretical Margin of safety. But when you are swimming in these waters, […]
If you are the kind of small time or beginning investor that I am hoping is reading this blog, then I didn’t just throw you into the deep end of the pool, I dropped you into the ocean. So consider this another swimming lesson. Investing 101. Beginning Investor class. More like a list of Investor tips.
Does the world really need another investing blog? Probably not. But here I am anyway.
In my hubris I figured my approach was a little different than most investing bloggers and perhaps a little more accessible. I am not a full time financial analyst, nor do I have a financial degree. I am not really interested in Quant type analysis. I use spreadsheets when they are useful and ignore them when they get in the way. I am not religious about an investing style, but I am a fanatic about wine. I invest for myself because it is enjoyable to me , but more importantly I want to make money.