6 Lessons Learned From Up And Down Markets [View article]
Thanks for the comment MIke, glad you liked the article. I too have resolved to have some cash at the ready when the next drop comes and it will come. Good luck
The funny thing about WorldCom was I thought it was a conservative internet stock, they supposedly supplied the picks and shovels to the internet companies. Ended up being a shovel to the back of the head. Oh well, I am still better off than Bernie Ebbers.
6 Lessons Learned From Up And Down Markets [View article]
Hi SDS and thanks for the question. Let me start by saying there are not that many dominant companies around and the ones that do exist usually sell at a premium. A dominant company is one that has little competition and is able to avoid death by creative destruction.
The best example is Coke. I am very confident that 10 years from now Coke will still be the largest seller of beverages in the world. The infrastructure they have in place, bottling plants, warehouses, transportation, etc. cannot be easily replicated. They own the most recognizable trademark in the world and could buy any start-up that might develop a popular new beverage. There is also little chance people decide they no longer want beverages. Put all those things together and you have a dominant company.
Exxon and a few other large integrated energy companies are dominant companies. The world will always need energy, they have infrastructure in place that is not easily duplicated and have the financial resources to buy any start-up or new energy source.
McDonald's would be a dominant company, the major railroads could be dominant companies, there are only four in the U.S. and two in Canada. No new railroads are going to be built and commerce will always need to be transported.
6 Lessons Learned From Up And Down Markets [View article]
Thanks for the comments Fred and appreciate your thoughts on T, always like to hear other constructive opinions. Stocks come and go on my watch list, some get too pricey and in some cases the business may start to under perform. T is on there now, but that is always subject to change.
Buying wonderful companies at attractive prices is, to me, the best investment plan.
6 Lessons Learned From Up And Down Markets [View article]
Thank you maybenot, appreciate the kind words. I agree that plans are always works in progress.
I am always surprised at how many people have no goal or plan. Just investing with no goal or plan isn't likely to lead to the results one would hope for. Having a plan keeps the investor disciplined and on a path to success.
6 Lessons Learned From Up And Down Markets [View article]
mrj, I never tell anyone how to invest, I have said many times there is more than one way to make money in the market. I have no opinion on Mongolian CDs because I know nothing about them. Long term money in ETF index funds sounds fine, I have done well with my index funds I buy through my work retirement plan.
Sounds like you have a plan, stick to it, refine it and always keep learning.
6 Lessons Learned From Up And Down Markets [View article]
Thanks for the update on some of the folks I use to watch on television. I have distrust of permabulls, like Abby Joseph Cohen who hasn't been bearish a day in her life and permabears like Marc Faber. I prefer a more analytical approach that varies from time to time. But truth be told, I just make up my own mind.
6 Lessons Learned From Up And Down Markets [View article]
Paul, great comment.
Showing my age I will tell that I watched Louis Rukeyser weekly and remember Gail Dudack well. There were several excellent rotating guests on the show, I always liked the late Marty Zweig. He was always worried, so I would be surprised if he wasn't cautious at the time. Many times those that sound the alarm do so early and are subjected to ridicule. I think in the short run we are a little ahead of ourselves. Long term, I am still bullish.
The flash crash is interesting because, like you, I sensed something was wrong, didn't know what, but it just didn't see to make sense. I don't think anyone still knows what happened, but I know I missed an opportunity.
For anyone interested I am attaching a Flash Crash audio tape of a guy who does audio from the S&P pit in Chicago. It is extremely interesting and entertaining. S&P drops 65 points and comes back all in about 8 minutes.
6 Lessons Learned From Up And Down Markets [View article]
Thanks for the comment and questions mjs28s. As shown in the link I included, the numbers referenced refer to the Dow. When I have some time I will research your S&P numbers.
As for the dips/rips comment. Again, if you look at the link you will see a chart that shows the market action during that period. As you will see there was a lot of up and own action, channeling would be a good description. If an investor bought at the lows and sold at the highs you would have done well.
6 Lessons Learned From Up And Down Markets [View article]
A diet? My condolences. I drink a lot of soda so when I switched from Coke to Coke Zero I dropped 10 pounds over time. Still crave the real thing at times.
Maybe a sliver of cherry pie will stop the craving.
6 Lessons Learned From Up And Down Markets [View article]
The funny thing about WorldCom was I thought it was a conservative internet stock, they supposedly supplied the picks and shovels to the internet companies. Ended up being a shovel to the back of the head. Oh well, I am still better off than Bernie Ebbers.
6 Lessons Learned From Up And Down Markets [View article]
The best example is Coke. I am very confident that 10 years from now Coke will still be the largest seller of beverages in the world. The infrastructure they have in place, bottling plants, warehouses, transportation, etc. cannot be easily replicated. They own the most recognizable trademark in the world and could buy any start-up that might develop a popular new beverage. There is also little chance people decide they no longer want beverages. Put all those things together and you have a dominant company.
Exxon and a few other large integrated energy companies are dominant companies. The world will always need energy, they have infrastructure in place that is not easily duplicated and have the financial resources to buy any start-up or new energy source.
McDonald's would be a dominant company, the major railroads could be dominant companies, there are only four in the U.S. and two in Canada. No new railroads are going to be built and commerce will always need to be transported.
Hope that helps.
6 Lessons Learned From Up And Down Markets [View article]
6 Lessons Learned From Up And Down Markets [View article]
Buying wonderful companies at attractive prices is, to me, the best investment plan.
6 Lessons Learned From Up And Down Markets [View article]
I am always surprised at how many people have no goal or plan. Just investing with no goal or plan isn't likely to lead to the results one would hope for. Having a plan keeps the investor disciplined and on a path to success.
6 Lessons Learned From Up And Down Markets [View article]
Sounds like you have a plan, stick to it, refine it and always keep learning.
6 Lessons Learned From Up And Down Markets [View article]
6 Lessons Learned From Up And Down Markets [View article]
6 Lessons Learned From Up And Down Markets [View article]
Thanks
6 Lessons Learned From Up And Down Markets [View article]
6 Lessons Learned From Up And Down Markets [View article]
Showing my age I will tell that I watched Louis Rukeyser weekly and remember Gail Dudack well. There were several excellent rotating guests on the show, I always liked the late Marty Zweig. He was always worried, so I would be surprised if he wasn't cautious at the time. Many times those that sound the alarm do so early and are subjected to ridicule. I think in the short run we are a little ahead of ourselves. Long term, I am still bullish.
The flash crash is interesting because, like you, I sensed something was wrong, didn't know what, but it just didn't see to make sense. I don't think anyone still knows what happened, but I know I missed an opportunity.
For anyone interested I am attaching a Flash Crash audio tape of a guy who does audio from the S&P pit in Chicago. It is extremely interesting and entertaining. S&P drops 65 points and comes back all in about 8 minutes.
http://bit.ly/14pVUmk
6 Lessons Learned From Up And Down Markets [View article]
6 Lessons Learned From Up And Down Markets [View article]
As for the dips/rips comment. Again, if you look at the link you will see a chart that shows the market action during that period. As you will see there was a lot of up and own action, channeling would be a good description. If an investor bought at the lows and sold at the highs you would have done well.
Thanks again
6 Lessons Learned From Up And Down Markets [View article]
i like your analogy of investing and golf, excellent point about improving yourself.
Appreciate you taking time to add to the conversation.
6 Lessons Learned From Up And Down Markets [View article]
Maybe a sliver of cherry pie will stop the craving.