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Some 2012 lessons of investing don't look that unfamiliar: Risk did better than risk-off; don't...

Some 2012 lessons of investing don't look that unfamiliar: Risk did better than risk-off; don't fight the Fed (or the ECB); it's better to always buy cheap than to try to factor in market timing. What did you learn this year?
Comments (21)
  • Drew Robertson
    , contributor
    Comments (312) | Send Message
     
    Pick a direction. Sell the spikes or buy the dips. And this year there were lots of dips esp. in politics.
    30 Dec 2012, 08:33 AM Reply Like
  • robgra
    , contributor
    Comments (352) | Send Message
     
    The trend is your friend. Politicians are the enemy.
    30 Dec 2012, 09:03 AM Reply Like
  • Ray Lopez
    , contributor
    Comments (1507) | Send Message
     
    And a trendy politician is a frenemy?
    30 Dec 2012, 01:35 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4055) | Send Message
     
    Always buy cheap......I thought AAPL at 640 was cheap. I still think sop but that always buy cheap thing doesn't always work. Maybe one needs a couple years time frame.
    30 Dec 2012, 09:07 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4055) | Send Message
     
    The dumbest farmers have the biggest potatoes........(old German saying) ;P
    30 Dec 2012, 09:08 AM Reply Like
  • Archman Investor
    , contributor
    Comments (2350) | Send Message
     
    I wish I could say I learned something...but i did not.
    The things I learned long ago about investing, Wall Street and the media still apply today. Here are a few:

     

    Create Multiple streams of Income. (Robert Allen perfected the term in the late 90's and it works!!)

     

    Have pride, integrity and make it so in the future you are completely self sufficient relying on no one. You will never be a slave like 85% of all Americans are setting themselves up to be.

     

    Do not be fooled- own some physical gold and silver bullion. The rich have always owned it and continue to do so. You can always pass it on to your family.

     

    All criminals aside, learn from the rich. How they earn their money. What they do with it. How they keep it. Jealousy never made anyone worth their salt a dime in life.

     

    Be a maker, not a taker.

     

    Stick to your investing plan.

     

    Wall Street is nothing but an advertising, sales machine.

     

    Experts know nothing. They are just ultra-smart salespeople. CNN anchors doling out financial advice and writing books about it should be banned from the air. (IE: Ali Velshi- the man with a college degree in religion. Zero background in finance and investing. Wake up folks!!)

     

    Take the bull by the horns and teach your children early. Let them enjoy the technology and marketing marvels of the current world. BUT....teach them it is mostly a mirage meant to keep them preoccupied and dumbed down.

     

    Save even the smallest amount you can and starting building your children's nest egg early. I had nothing growing up. I received nothing from my parents through my entire adult life. So be it. I do not intend to let me children follow in those same footsteps. They will need it in the future in order to stay above the sea of below average citizens and takers.

     

    You do not have to be wealthy to give some back every month, but give to those who truly need it. However, do not give to those organizations who put your money back in the hands of the takers.
    (When I refer to takers I am not talking about the truly poor who have been and continue to be their whole lives.)

     

    Give to: St. Jude's Children's Hospital, Ronald McDonald house. WoundedWarriorProject.org to name a few I give to each month.

     

    I have said my piece. May all have a healthy happy new year.
    30 Dec 2012, 09:33 AM Reply Like
  • ComputerBlue
    , contributor
    Comments (678) | Send Message
     
    Great words by Archman. Thanks.
    30 Dec 2012, 11:02 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4487) | Send Message
     
    Archman , great words of wisdom for all to follow
    30 Dec 2012, 11:50 AM Reply Like
  • bbro
    , contributor
    Comments (9301) | Send Message
     
    My Texas Longhorns had a suspect defense until last night....
    30 Dec 2012, 10:10 AM Reply Like
  • Breckmoney
    , contributor
    Comment (1) | Send Message
     
    This year taught me to stick to my strategy, no matter how hard it is and how much I wanted to deviate. Only once did I err and it cost me about 10% of my yearly gains; obviously a bad move, but one I intend to learn from for the rest of my life. I've also spent a lot more time this year learning the industries my investments operate in rather than obsessing over daily company-specific headlines.
    30 Dec 2012, 11:18 AM Reply Like
  • TFCAB
    , contributor
    Comments (1941) | Send Message
     
    I learned to stay away from CNBC; IMO it pollutes your mind w/ constant drivel that only serves to fill their air time. In 2013, i will use those hours to do further study of the market and my positions.
    30 Dec 2012, 11:36 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    Don't let your political bias affect your investing strategy.

     

    Easier said than done of course, especially in my case :)
    30 Dec 2012, 11:39 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1135) | Send Message
     
    I also note one other lesson. Despite Bogle's pronouncements passive indexing doesn't always work even with the dividend.

     

    The S&P closed at 1402.43 on Friday.

     

    Interesting that the S&P500 closed at 1402.11 on Jan 5, 2000.

     

    Gives new meaning to the phrase sideways markets :)

     

    Hopefully the next 10 years is a win for the index crowd.
    30 Dec 2012, 11:43 AM Reply Like
  • Fear & Greed Trader
    , contributor
    Comments (4487) | Send Message
     
    Stay on course, follow your strategy - reinforce YOUR goals ,try your best to ignore CNBC,Bloomberg, FBN talking heads offering their "agenda's .
    (IMHO there are probably two media types that can be acknowledged for their thoughts.)
    Do the best u can every day , use each challenge to your investing approach as an opportunity to grow.
    Healthy Happy New Year to all !
    30 Dec 2012, 11:48 AM Reply Like
  • Ray Lopez
    , contributor
    Comments (1507) | Send Message
     
    Do nothing--that's my best advice learned. I learned that trading too frequently is bad for your portfolio. Now I've been an active trader for decades and have beaten (barely) the S&P500 (not sure if I beat it risk adjusted however) but this year I lost my password token to log into my Ameritrade account, and was too lazy to get another one. So I was physically unable to trade. And the trades I would have made, had I made them, would have paid off less than doing nothing, which is what happened. So I ended up doing better than expected just leaving well enough alone. My biggest stock is an EFT that tracks the total market, by Vanguard: VTI.
    30 Dec 2012, 01:40 PM Reply Like
  • kata
    , contributor
    Comments (441) | Send Message
     
    Lets see, Railroads and Insurance companies are great business models and its better to be lucky than good, lol.
    30 Dec 2012, 02:16 PM Reply Like
  • J. Sobes
    , contributor
    Comments (91) | Send Message
     
    You create your own luck. I may have been lucky this year but I worked my butt off to be!
    30 Dec 2012, 02:40 PM Reply Like
  • jeanewight
    , contributor
    Comments (339) | Send Message
     
    I learned to trust my gut and that there is ALWAYS something to learn. Really, is there anyone who has "arrived?"
    30 Dec 2012, 06:35 PM Reply Like
  • Macro Investor
    , contributor
    Comments (8297) | Send Message
     
    I didn't learn anything knew, I just keep following my lesson from the 90s.

     

    Don't fight the Fed. That's all anyone needs to know, really.
    30 Dec 2012, 10:10 PM Reply Like
  • Brad Kenagy
    , contributor
    Comments (1459) | Send Message
     
    I learned that low volatility ETF's work great. I also learned that Emerging markets corporate bonds were a hot investment, whether it be investment grade emerging market corporate bonds (EMCB), or high yield emerging market corporate bonds (HYEM)

     

    I am Long the Powershares S&P 500 Low volatility ETF (SPLV)
    I am Long the Market Vectors Emerging Markets High Yield Corp. Bond ETF (HYEM)
    30 Dec 2012, 10:13 PM Reply Like
  • Villi Grdovich
    , contributor
    Comments (587) | Send Message
     
    As with BK, low volatility as a core strategy has worked in 2012. In addition I felt that categorising stocks along lines related to market moves rather than low/high PE, large/small cap value etc helps to add a bit of alpha.

     

    I also felt that interpreting price charts is less instructive than monitoring earnings revisions. If someone was to make the monitoring of earnings as easy as monitoring of charts, overall investing results would improve markedly.
    31 Dec 2012, 12:01 AM Reply Like
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