Avoiding Confirmation Bias
As I have mentioned previously, one of the points of the 80-20 Portfolio is to incorporate some of the research of Behavioral Finance into an Investing Strategy. One of the behavioral traps we go through is something called Confirmation Bias. In short, this is when you look at facts that agree with your investing thesis [...]
Investing Regret
I had a dose of Investing regret the other day. I have posted about my terrific gain on HAST for the 80-20 portfolio. Right after I sold it at $7.17/share, the price dipped. But then it soared. Then it had a spectacular rise to over $9.00/share. I was, of course, bummed that I had not [...]
HAST – Hasting Entertainment – 80-20 Portfolio – SOLD
Just a quick update on HAST. I sold all 110 shares at $7.19 this morning for a total, minus the $4.50 Zecco commission, of $786.40. While the 57% increase on this investment in less than three weeks is unexpected in its quickness, it is too early to say whether the 80-20 strategy is worthwhile. I [...]
HAST – Hasting Entertainment BUY 80-20 Portfolio
On April 7th I purchased 110 shares of Hasting Entertainment – HAST for $4.51/share including the $4.50 commission from Zecco the total comes to a total investment $500.60. This was for the 80-20 Portfolio. I know, I am late in posting about it. But I had to lay out what the criteria were before I [...]
Investing Strategies for the Small Investor and 80-20 Portfolios
When you begin to invest you need to develop an investing strategy. Having a strategy is like a google map. It will help direct you down the right freeway and hopefully help you avoid the pitfalls, er traffic, and get to the destination you want. If you are at this website you know my overall [...]
80-20 Investing – the Portfolio
I have decided to set up another real money portfolio to test out my ideas of 80-20 Investing, which I have previously discussed. For 20% of the effort I believe it is possible to get 80% of the investing result. The idea is fairly simple. Set up some investing criteria, and when a stock passes [...]
Easy Concept, Potentially Profitable Investing Strategy
This is really another in the Value Investing Series, but also an 80/20 Investing idea. To reiterate 80/20 investing is my value investing concept that attempts to get 80% of a solid return with 20% of the work. Not sure if it is really viable, although I am thinking of starting a test portfolio. But it is also the result of finding the website I mentioned in yesterdays blog about Empirical Finance Research.
Ben Graham’s Stock Selection Criteria – Value Investing Series
I found this idea in Tweedy Browne’s What Has Worked in Investing. And after a little more research I have included it in my Value Investing Series. In a “Test of Ben Graham’s Stock selection Criteria,” Henry Oppenheimer studied whether or not a set of Ben Graham’s investing criteria actually worked. Toward the end of Graham’s life he espoused a different, although related criteria to what he espoused in his master works Security Analysis and the Intelligent Investor.
80-20 Investing and Other Financial Heresies
I am slowly developing, over time, an investment method I call 80-20 Investing. Everyone knows the 80-20 rule. For any activity you spend 20% of your time to get 80% of the result. The converse is obviously also true. The last 80% of effort only yields a 20% result. I really don’t want to waste my time, so I am interested in maximum efficiency.