10-30-2014, 06:53 AM
(This post was last modified: 10-30-2014, 07:27 AM by Robandcindy2.)
My Sleep Well At Night tactics keeps me in well over 100 equity positions. My options were to religiously monitor 20-40 holdings for signs of stress or hold a broad basket, my own personal ETF, and try to enjoy life just worrying about the elephants in the room.
Yesterday I bailed on ARCP after having Enron flashbacks (never owned the legendary Enron). I logged into the books a real $1400 loss. Or did I really save $4000? Time will tell.
Just a quick 'cocktail napkin' calculation tells me that if my position in ARCP had been 1/20th of my portfolio my real loss would have been much worse. Instead I woke up yesterday, fetched our 4 month old granddaughter for the day, ran out to play a softball game, came home and read the news at SeekingAlpha about ARCP.
Hmmmm.....???
My normal reaction to individual dips such as these are to read every analyst news story I can get. Then I go back and review Morningstar's take. I then re-plot the company at FastGraphs. I finally end up here to see if we are discussing it. In the case of ED last year, SDRL and ESV this year I sit back and think "I got some time....all external..."
Not so with ARCP. "...audit committee discovered "intentional" accounting errors." (http://www.reuters.com/article/2014/10/2...nalFinance) External market factors vs what amounts to "lying and trust". So I sat back, head against the headrest, elbows in and said "bailout!-bailout!-bailout!"
And then Papa took a nap.
REF:
http://seekingalpha.com/article/2612845-...-the-hills
http://seekingalpha.com/article/2610375-...properties
http://seekingalpha.com/article/2586625-...-yield-bet
Yesterday I bailed on ARCP after having Enron flashbacks (never owned the legendary Enron). I logged into the books a real $1400 loss. Or did I really save $4000? Time will tell.
Just a quick 'cocktail napkin' calculation tells me that if my position in ARCP had been 1/20th of my portfolio my real loss would have been much worse. Instead I woke up yesterday, fetched our 4 month old granddaughter for the day, ran out to play a softball game, came home and read the news at SeekingAlpha about ARCP.
Hmmmm.....???
My normal reaction to individual dips such as these are to read every analyst news story I can get. Then I go back and review Morningstar's take. I then re-plot the company at FastGraphs. I finally end up here to see if we are discussing it. In the case of ED last year, SDRL and ESV this year I sit back and think "I got some time....all external..."
Not so with ARCP. "...audit committee discovered "intentional" accounting errors." (http://www.reuters.com/article/2014/10/2...nalFinance) External market factors vs what amounts to "lying and trust". So I sat back, head against the headrest, elbows in and said "bailout!-bailout!-bailout!"
And then Papa took a nap.
REF:
http://seekingalpha.com/article/2612845-...-the-hills
http://seekingalpha.com/article/2610375-...properties
http://seekingalpha.com/article/2586625-...-yield-bet
There are people who use up their entire lives making money so they can enjoy the lives they have entirely used up
Frederick Buechner
Frederick Buechner