What Did You Buy Today?

[fenders53]

(08-17-2019, 11:33 AM)rayray Wrote: I stayed 100% invested during the 2008/09 meltdown--invested before, during and after and it was not the end of the world, in fact, I've done better then all my friends and family that sold or stayed on the sidelines. I know a couple of guys who stayed on the sidelines for 5 to 7 years, getting back into the market 2013 to 2014.

I've been investing in the stock market for almost 25 years and I've experienced 40% plus drop in my total investment portfolio...wait...wait...wait...wait for it...ONCE. My first investments were bonds and CD's that my grandparents got me into with grass cutting, Christmas and birthday money when I was very young (13/14 years old) and let me tell you guys something, even with a 50% drop in total net worth, bonds and CD's have not been able to hold a candlestick to quality stock investments (10% plus CD returns just ain't going to happen anytime soon--not in this rate environment). But who wants to pay high mortgage interest rates anymore? People would flip the freak out if mortgage rates go up to 8 plus percent. What about the late 70's and early 80's? Those mortgage rates? For get it, people would stroke out. Banks and the such weren't giving good returns on CD's out of the goodness of their hearts. Banks can keep their free toasters! It's a give and take world. My point is that my grandparents should have let me buy Microsoft and or Walmart like I wanted instead of bonds and CD's that they directed me towards because of safety concerns.

I might come across as bull, I'm not...I know the market goes up and goes down--it happens. As we speak, I have some investments that are down 25% plus, I've had dividend cuts (big ones) in the last 10 years...but one important aspect, even with some big dividend cuts my overall dividend income has gone up every year.  My strategy is "Steady as she goes..." and don't get sidetracked by the noise. Politics is noise, the media is noise (and yes those financial shows and articles are noise too), anyone telling you, arguing until they're blue in the face to sell are full of noise out the ying yang. Know yourself as an investor then act accordingly. From that first bond/CD to the last stock purchase I made, I know my investor-self, after the course of 35 years, extremely well. I know what I'm going to do and what I'm not going to do as an investor. It did not happen overnight, it did not happen in a decade, it took a lifetime.

Every so often I'll look at my portfolio and think should I sell this one, should I trim this one...eh? When I crunch the numbers, really crunch the numbers I usually come to the conclusion I'm not selling--it does happen though, in rare occasions. Why? Cause I don't invest in something that I want to sell, I'm not buying something just so I can turn around and sell it. It takes too much time in order for me to buy that I don't want to waist it. Some of my best choices I made were NOT investing in a particular company, some of the best financial advice I took was NOT doing what they were telling me to do. Sometimes the best thing to do is NOTHING--and I'm really good at doing nothing, actually, an expert--ask my wife! When evaluating a stock, assuming the numbers are not a lie, over the long term, even through the bad times, how can one lose?

invest in a QUALITY company
at a REASONABLE price
look for that DIVIDEND
and NEVER sell

Remember, it's not a stock market it's a market of stocks, it's not a sprint, it's a marathon.

I am good with most of that until you say NEVER SELL.  That means you never ever make a bad decision.  Do you really believe they Ray?  You are either think you are the most amazing investor to ever walk the earth, or a little bit delusional and locked into a strategy.  I refer you back to Buffet and Munger.  "Don't lose money".  I know that quote is tongue in cheek, so I interpret it to mean "don't lose money when you should know better".   There is patience, and there is stubbornly riding a dumpster fire into the ground and losing it all because you are too stubborn to admit you made a mistake.  Patience doesn't cure all bad decisions.