Control Your Emotions, Direct Your Thoughts, Ordain Your Destiny

Aug. 16, 2017 6:58 AM ETTSLA, PFE, XOM14 Comments

Summary

  • Emotional control is probably the most difficult and important task for an individual investor.
  • Keeping focused on what really matters, in a noisy investment world full of motivations, is the next most important task.
  • What really matters in buying stocks is how a company is executing today and preparing for tomorrow - not what it did years ago.
  • Here are three stocks that generate emotions and some important questions to consider about them before deciding whether to buy or sell.

Back when I was in high school, I got selected to go to a program called "Camp Enterprise," which was run by the Rotary Club. It was pretty impressive in hindsight. At the time, I was just happy to get a couple of days out of school and then get to dance with a pretty girl at the closing party.

Some of the speakers for the camp included business executives who traveled a couple of hours to talk to kids from various high schools. I remember in particular Marc Marotta, a former Marquette Warrior basketball player who became a prominent lawyer and community leader, and Ulice Payne Jr., another Marquette alum who went onto a trailblazing law and business career, who eventually became president of my beloved Milwaukee Brewers.

In one of the breakout sessions, we had a presentation that featured some thoughts from Napoleon Hill's writings. The title of today's article is a little different from an actual quote from Hill. The actual quote is:

"Direct your thoughts, control your emotions, and ordain your destiny!"

I have taken that with me in life, using it to stay balanced when things were going bad and when things are going good. I also applied it when I coached kids and men's sports teams, getting some good results and positive outcomes after the sports were done. I have made a point of using it for investing too.

Control Your Emotions

I rarely tell people to sell specific securities unless they hire me to do a portfolio review. However, I have made a point of suggesting people sell some popular dividend growth stocks lately, mostly because those stocks lack the "growth" part of the equation anymore and are carrying historically high valuations.

In making a case for selling Coca-Cola (KO), Verizon (

This article was written by

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Disclosure: I/we 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.

Additional disclosure: I own a Registered Investment Advisor, however, publish separately from that entity for self-directed investors. Any information, opinions, research or thoughts presented are not specific advice as I do not have full knowledge of your circumstances. All investors ought to take special care to consider risk, as all investments carry the potential for loss. Consulting an investment advisor might be in your best interest before proceeding on any trade or investment.

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