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Tilted Cat Head
Administrator
Location: Manhattan, NY
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Quote:
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Originally Posted by AVoiceOfReason
5. Don't be someone that buys a stock and then holds it forever. Again tied to number 2 above, you may have picked one at the right time for awhile, but it's time is over. If you bought Microsoft 10 years ago, you had a good winner for the first 5 years and one that has been flat for the last 5. Why keep it? Take that money and use your noodle to find the next Microsoft for the next 5 years--you did it once! Look at each of your holdings and decide "if I didn't have this now, would I buy it?" If the answer is "no" then you should sell it and find something else.
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I like everything else you said but the above. Fear and greed are two parts of the same coin that paralizes most investors. Waren Buffet the The Oracle of Omaha buys and holds for life and is the best and wealthiest investor to date. In trying to emulate what works, I'm going to follow his method. As far as I can tell buying and selling just costs me extra overhead of costs which I have to account for in profitable increases and take an additional penalty when the stock is already deflated in value.
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