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Bmayo32
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I'm a happy go lucky guy. I love the city I live in (Nashville). I'm a devote follower of Ben Graham, Warren Buffett, Peter Lynch, John Bogle, Ben Franklin, Charlie Chaplin, Charlie Munger, and you!
  • Confessions Of A Gambling Value Investor 2 comments
    Jun 24, 2013 12:54 AM

    I've read Phillip Fisher, Benjamin Graham, Warren Buffett, and Peter Lynch, so Ishould know how to behave.

    I shouldn't worry about the gyrations of a stock price and should focus on the underlying business.

    However, I now find myself checking stock futures before getting out of bed in the morning, checking stock prices on my cell phone while driving (which is illegal I think), and the last straw...I put my cell phone in a ziplock bag to check stock prices while showering.

    I'm a dude. It takes me five minutes to shower. How much could possibly change in the five minutes I'm in the shower?

    Ok, let's be real here. Gambling is fun; and the stock market can have some casino like qualities (sure wish I could order a bloody mary from my stock app on my iPhone), but I should know better.

    I believe Warren Buffett being in Omaha gives him a supreme advantage over being on Wallstreet. Also, Sir John Templeton had the best performances of his life after he moved to the Bahamas and received the Wall Street Journal on a one week delay.

    Investing should be fun. If it's not, you're doing it wrong. But I need to derive more fun from learning about businesses, and less fun out of watching the stock price 'beep' and 'boop' all over the place. (Seriously, those noises are about to drive me bonkers.)

    Ben Graham lays out a good strategy in The Intelligent Investor about a proper portfolio allocation. I'm currently in the range that would make him proud, and now I just need to let it ride.

    Here's a new rule for myself to keep me in check: Check my stock prices only twice per day.(whaaaaaaaaaat?!) Once in the morning and once around closing time.

    The stock doesn't know I own it. So habitually looking at it doesn't do either one of us (me or the stock) any good.

    Since I don't look at the stocks as much on down days, if we get a huge market correction, I wouldn't need to take my own advice at all anyway.

    Disclosure: I am long GLW, BKE, BRK.B.

    Additional disclosure: I'm not a financial advisor, I'm just some dude that gets a lot of joy out of saving money and investing it.

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  • connellybarnes
    , contributor
    Comments (315) | Send Message
     
    I had a similar problem. I guess it's human nature to want to speculate, even when you're watching grass grow. There's really nothing to do but people get tunnel vision focusing on whether their grass is growing slightly faster than the other grass.

     

    Now I tend to check prices at the end of the week, and occasionally post comments on some investing blogs when I have a free moment. I changed my habits because:

     

    (1) If I'm thinking about prices daily my investment results are strictly worse than if I review prices weekly.

     

    (2) I don't want my life to consist of babysitting companies -- I want to invest so I can travel, read books, do research or whatever. I guess a lot of the mispricings are created due to trigger happy people staring at their Bloomberg terminals every day.

     

    (3) I wanted to take a philosophical and unemotional approach to investing. Munger made a comment that he had seen the market value of his holdings decrease by 50% for the third time in his career in 2008. I don't want to be stressed out when (not if) that happens, and just be cooly rational. So I treat investing as a philosophical game of optimality. Even if the decisions turn out wrong after the fact, I just want them to be rational before the fact. If it were an emotional game then the emotional toll of some meaningless short term score would bother me, when I'm really only concerned about the quality of my decisions over many years. If I focus on money then I worry about money, so I don't focus on that -- I focus on optimality.
    13 May, 02:32 PM Reply Like
  • Bmayo32
    , contributor
    Comments (55) | Send Message
     
    Author’s reply » God Bless it!! Your number 3 is perfectly stated!!
    23 May, 09:32 AM Reply Like
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