06-04-2018, 10:37 AM
This quote I saved from Chowder sums it up pretty well:
This is really common sense if people will stop trying to be too smart.
If I have to micro manage a position, and spend the amount of time every week, per position as Cramer recommends, then I took on too much risk.
If one owns high quality companies, a review of the companies progress, earnings and future guidance is all that is required, as far as I'm concerned.
I recall owning the Canadian Trusts and following them with an "eagle eye". I was on top of those puppies. I kept up with every article or mention of the companies I owned back then.
One day I woke up, turned on the computer, and saw that every trust I owned was down over 20% in pre-market. The market hadn't even opened yet!
That day came to be known as the Halloween Massacre, and I learned a valuable lesson. No matter how closely you monitor a company, you can't predict bad news that has that kind of effect of your holdings.
Successful investors know how to buy quality companies that don't require the day to day monitoring that the micro managers use. When your management style is to micro manage, you get micro results.
No matter how closely you watch a position, you aren't good enough to know in advance, prior to the market knowing, that a company is in trouble. Whatever it is you think you are going to know, will already be priced into the stock.
I had a few exchanges with people who owned AT. I thought it was too speculative, and I always got the response that they were watching it closely. They had an "eagle eye" on it. They read the 10K's, the 10Q's, read every article that came out, followed the conference calls, listened to the analysts, and yet woke up March 1 of this year, where the price gapped down 38% before the market even opened.
Think about that!
So much for all of that monitoring.
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If I it wasn't for me spending all the time writing/researching for articles, I wouldn't spend all that much time on my actual portfolio anymore.
Buy quality and hold.
This is really common sense if people will stop trying to be too smart.
If I have to micro manage a position, and spend the amount of time every week, per position as Cramer recommends, then I took on too much risk.
If one owns high quality companies, a review of the companies progress, earnings and future guidance is all that is required, as far as I'm concerned.
I recall owning the Canadian Trusts and following them with an "eagle eye". I was on top of those puppies. I kept up with every article or mention of the companies I owned back then.
One day I woke up, turned on the computer, and saw that every trust I owned was down over 20% in pre-market. The market hadn't even opened yet!
That day came to be known as the Halloween Massacre, and I learned a valuable lesson. No matter how closely you monitor a company, you can't predict bad news that has that kind of effect of your holdings.
Successful investors know how to buy quality companies that don't require the day to day monitoring that the micro managers use. When your management style is to micro manage, you get micro results.
No matter how closely you watch a position, you aren't good enough to know in advance, prior to the market knowing, that a company is in trouble. Whatever it is you think you are going to know, will already be priced into the stock.
I had a few exchanges with people who owned AT. I thought it was too speculative, and I always got the response that they were watching it closely. They had an "eagle eye" on it. They read the 10K's, the 10Q's, read every article that came out, followed the conference calls, listened to the analysts, and yet woke up March 1 of this year, where the price gapped down 38% before the market even opened.
Think about that!
So much for all of that monitoring.
--------------
If I it wasn't for me spending all the time writing/researching for articles, I wouldn't spend all that much time on my actual portfolio anymore.
Buy quality and hold.