Investment Strategies 03 (Jul 13 - Mar 19)

Re: Investment Strategies 03 (Jul 13 - Dec 18)

Postby winston » Thu Jun 21, 2018 8:57 am

What I'm Doing With My Money Now (and for the Rest of 2018)

by Mark Ford

I have several dozen rules. Here are 10 of them:

1. I don't invest in anything I don't fully understand.

2. If I am determined to break rule No. 1, I admit to myself that what I'm doing is gambling, not investing. And I proceed fully expecting to lose every penny I put on the line.

3. I would never put all my savings into stocks or even into a portfolio of stocks and bonds. I have my money allocated in at least a half-dozen asset classes at all times.

4. I don't try to get from any asset class (stocks, bonds, real estate, commodities) or subclass (blue chip stocks, growth stocks, etc.) more than 10% to 20% of its natural (historic) rate of return. When someone recommends an investment "sure to" do much better than that, I steer clear.

5. Before investing in anything, I have a Plan B in place. A proper Plan B is a preset (and if possible an automatic) protocol that cashes me out of the deal as quickly as possible and with the least amount of damage.

6. As a rule, I don't invest in growth stocks. I prefer buying shares of world-class, income producing, Warren Buffet-type companies that I feel confident will still be strong in 20-plus years. And I do not sell these stocks in market downturns. I often buy more of them in order to "average down" my buy-in price.

7. I devote the largest portion of my portfolio to income-producing real estate and use a trusted partner to manage them.

8. The next largest slice of my investment pie goes to private businesses - either in stock or debt or convertible debt. When considering such investments, I ask myself how well I understand it and whether I have some control - or at least influence - on management, should they take actions that seem wrong to me. (And I have my Plan B.)

9. I don't "invest" in hard assets or currencies because I don't consider them investments. (They have little or no intrinsic value, do not produce value and do not earn income.)

10. I never invest more than a very small portion of my net investible wealth (net worth minus my house and other things I don't intend to sell) in any single investment. (Long ago my limit was 5%. Now it's 1%.)


Source: The Oxford Club
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Investment Strategies 03 (Jul 13 - Dec 18)

Postby winston » Wed Jul 04, 2018 6:27 am

The important influence of low interest

Larry Robbins (of the hedge fund Glenview Capital) looked back at the important influence of low interest rate environments on stocks.

He said "every time ONE of these following conditions has existed, the market has produced positive returns.

Here they are again:
1. When the 30-year bond yield begins the year below 4%, stocks go up 22.1%.
2. When investment grade bonds yield below 4%, stocks go up 16%.
3. When high yield bonds yield below 8%, stocks go up 11.6%.
4. When cash as a percent of asset for non-financials is above 10%, stocks go up 17.6%.
5. When the Fed tightens 0-75 basis points in the year, stocks go up 22%.
6. When oil falls more than 20%, stocks go up 27.5%.

His study showed that there has NEVER been a down year in stocks, when any ONE of the above conditions is met.

Source: Forbes
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Investment Strategies 03 (Jul 13 - Dec 18)

Postby winston » Mon Jul 09, 2018 11:02 pm

How to Spot the Small Handful of Stocks That Can Make You Rapid, Outsized Profits

by D.R. Barton, Jr.

Extreme oversold reversals.

These happen when the stock or even the entire market has plunged, pushing the price level down well beyond what is reasonable.

That means, simply, that the shares or market in question are poised for a spring back to the upside.

Again, thanks to the general bias to the upside – a tendency that reflects the innate optimism of the people doing the trading – stocks, sectors, and indexes tend to bounce back sharply after a major drop.

In fact, 18 of the 20 largest single-day up moves in the S&P 500 were the result of extremely oversold snapbacks during massive bear moves.


Extreme overbought reversals.

The extremes of this flavor that are the easiest to identify and occur when the price of the stock or financial asset has gone straight up (up too far and too fast) – meaning it’s poised for a pullback or snapback to the downside.

Before I sign off, extremely overbought reversals have one characteristic that must be understood: Because investors have an optimistic bias (meaning prices have the same predisposition), individual stocks, sectors, and even entire markets can stay overbought for some time.


Source: Money Morning

http://dailytradealert.com/2018/07/09/h ... d-profits/
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Re: Investment Strategies 03 (Jul 13 - Dec 18)

Postby winston » Fri Jul 13, 2018 10:19 am

Beat the Market With the "Big Five" Factors

by Nicholas Vardy

1. Value
2. Momentum
3. Quality
4. Size
5. Volatility


Source: The Oxford Club
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Investment Strategies 03 (Jul 13 - Dec 18)

Postby winston » Tue Jul 24, 2018 9:11 am

How to Identify Stocks That Can Rise Tenfold… or More

by Alexander Green

1. They are tremendous innovators
2. They experience terrific sales growth
3. They protect their margins
4. They beat consensus estimates
5. They are small cap to midcap companies
6. They are relatively unknown


Source: Liberty Through Wealth


https://libertythroughwealth.com/2018/0 ... ?src=email
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Re: Investment Strategies 03 (Jul 13 - Dec 18)

Postby behappyalways » Thu Jul 26, 2018 5:11 pm

How Goldman Sachs' computers lost World Cup
https://economictimes.indiatimes.com/ne ... 998086.cms
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Re: Investment Strategies 03 (Jul 13 - Dec 18)

Postby winston » Wed Aug 29, 2018 12:46 pm

A Warren Buffett investing tip that can help investors focus as another stock market record is reached

Stock market indexes are hitting new highs just a few weeks after fears about the Turkish economy spooked investors and sent U.S. and global equity benchmarks tumbling.

Warren Buffett has always said that stock market volatility is a useless measure for investors worried about risk.

The Berkshire Hathaway CEO and chairman and billionaire has long maintained that the right way to think about the stock market is as serving investors, not instructing them.

Market volatility is a bad measure of investor risk.

The key of the Graham approach to investing is not thinking of stocks as part of a stock market but as individual businesses. If the business does well then the investor will also do well, as long as they haven't paid too much for it.


Source: CNBC

https://www.cnbc.com/2018/08/27/a-warre ... yptr=yahoo
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Re: Investment Strategies 03 (Jul 13 - Dec 18)

Postby winston » Fri Sep 14, 2018 3:14 pm

Build Your Investment Strategy With These 9 Questions

by Coryanne Hicks

1. Where am I currently?
2. Where do I want to be?
3. What fina
ncial goals do I want most?
4. What investment return do I need to reach my financial goals?
5. If my investments drop 20 percent, how will that make me feel?
6. What allocation will let me achieve my goals and still sleep well at night?
7. How do I define failure?
8. How will I track my progress?
9. Do I want to do this on my own?



Source: U.S.News & World Report

https://finance.yahoo.com/news/build-in ... 33628.html
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