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Mike Serebrennik
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I am a physician by training and now a full-time investor and entrepreneur, with a focus on foreign stocks, REITs and spin-offs.
  • Stock Shop Android App Available

    The first version of Stock Shop is now on Google Play!

    I noticed that there were no apps that help with fundamental analysis of the company. Before buying shares, I like to look at some key valuation metrics, read the SEC filings, compare a stock with others side by side...

    Stock Shop for Android makes your stock research easier and more effective. With Stock Shop, you can:

    · Get key valuation metrics on a stock

    · Compare up to 3 stocks on fundamentals

    · Read SEC filings and news on a stock

    · View stock charts for various time ranges

    · Check the price action of the major US indices

    This app is designed to give you as much objective information on a stock as possible.

    Future features:

    · Stock List

    · Some of what you suggest:)

    May 22 12:43 PM | Link | Comment!
  • A Little-Known Way To Increase Your Success Rate

    "I could improve your ultimate financial welfare by giving you a ticket with only twenty slots in it so that you had twenty punches - representing all the investments that you got to make in a lifetime. And once you'd punched through the card, you couldn't make any more investments at all. Under those rules, you'd really think carefully about what you did, and you'd be forced to load up on what you'd really thought about. So you'd do so much better."

    -Warren Buffett

    Having recently looked though my investing journal, I noticed my own occasional "toe-dipping" investing behavior. I would identify a security, study it, find it suitable for investing and buy a relatively small amount of it. Perhaps I thought that the price could decline further, giving me an opportunity to buy more. Perhaps I was concerned that a large position may result in a large loss. What often happened, however, was...

    Continue reading on

    Feb 17 1:15 PM | Link | Comment!
  • Organizing My Money As An Early Retiree

    Having read the recent article by Roger Nusbaum regarding investing emergency cash, I decided to share the strategy that I use to organize my money as an early retiree. I will also include some variant views.

    I organize my money into the following three pools:

    1. Emergency cash

    My view: This pool contains enough cash to cover approximately one year of living expenses. I do not invest this cash at all and keep it in a checking account for easy access. I agree with Roger in thinking that it is just too risky to take a chance of an even temporary depletion of this pool of cash due to fluctuation of security prices.

    Variant view: Emergency cash does not have to be separated from the account which contains securities and can even be invested. With several brokerage houses offering "cash management accounts" that have debit card and check writing privileges, this may be the most convenient option for a disciplined investor. If this cash is not invested, an investor can simply withdraw it when it is needed. If more cash is needed than is available, some securities may be sold to raise it. For example, an investor may sell a losing position to simultaneously raise cash and receive a tax deduction (or offset a gain).

    2. Dry powder

    My view: I like to keep anywhere between 10% and 25% of my investment account as cash within the brokerage account, ready to be deployed. This cash tends to accumulate when there are few attractive investment opportunities, such as after market run-ups; it tends to run low during market corrections, when there are more securities on sale. These are not hard and fast numbers; if we have another 2008-style market meltdown, all dry powder cash may become invested. Conversely, if the market is grossly overvalued for quite some time, the cash balance may become higher than expected.

    Variant view: Having dry powder may reduce performance during bull markets. Instead, an investor may replace cash with very high-quality holdings, such as Berkshire Hathaway. This way, during rising markets, an investor will capture market performance, or even exceed it. During market corrections, holdings like Berkshire Hathaway will probably decrease in price to a much lesser extent than many other stocks. One may then sell a high-quality holding and purchase beaten-down securities that stand to rebound much more vigorously during a market recovery.

    3. Securities

    My view: As an early retiree, I favor income-producing securities acquired at cheap or at least reasonable prices. I believe that it allows me to live off my investments without depleting the principal. I do allow some non-dividend payers in my portfolio, if I consider their future prospects to be excellent. Should these non-dividend payers become overvalued, I may sell them and exchange them for more attractively priced income-producing securities. I strongly favor companies that buy back their stock for cancellation, increasing the percentage of my ownership of these companies. I like to buy securities that other investors hate at the moment; I am not afraid to look abroad for interesting investment candidates. Occasionally, I may sell put options on stocks that I would really like to own at the strike price minus premium.

    Variant view: Please post yours in the comments!

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Tags: retirement
    Dec 11 4:45 PM | Link | 2 Comments
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