“When you win you party like mad.”

For this kind of party, bring your own research.

 

 

 

Absolutely everyone is invited.  But only the strong and savvy can stay.  Didn’t Gatsby say that?  The market party’s five days a week, running in a giant circle.   Again, bring facts.  Strewn across these sprawling party lawns you will find bits and tattered bits of glory and raw ignominy.  A stock’s base can fall out just like every disappearing wave.  Just happened to us.  Under Armour(UAA).  Mesmerized by CEO Kevin Plank’s nonstop audaciousness, we missed the obvious.  We felt North America, and in time China, footwear world-wide, and international branding–think China/Curry, woul outweigh UAA’s heavy use of discount doors.  That wave went out.  We did not however flee the beach naked.

 

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We’re solid because we’re diversified.  Party on.  We also used the bumps in the stock price from their latest earnings, along with the NBA Finals, to scale out above $22.27sh.  In addition, we did call it right that no bump would follow the Warrior’s series victory.  We felt it was all baked-in.  Just sayin’.  But of course it hurt.  Yet this party’s infinitely big, bigger than any frat house brawl or time zone.  It’s global and it follows the sun and so do the regrets and remorse of those who wander in lacking direction.People talk at parties.   People talk about stocks at parties.  Let’s get some direction concerning listening to opinion.

Neil deGrasse Tyson hears opinions and also follows suns.  Neil likes millions of suns and he’s rather bright personally.  They taught him astrophysics at Columbia.  What does Neil have to say about listening, opinion, and  stock party talk?  FANG’s hotter then Mars?  No.

 

“If you have to rely on job titles or credentials, you need a better argument.”

 

 

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Boogie beneath the stars with Tyson’s take on opinion.  He knows.  He hears stuff constantly–just like you–most of it opinion.  Imagine what it must be like to be Neil.  Many voices speak daily.  We listen.  Our final analysis remains the same.  Precisely what is the story?  What are others saying?  Does it square with what we know? Does it square with trusted sources?

Sound investing direction emerges out of sound research and synthesis.  Buffet doesn’t open his comments by saying “I’m Berkshire-Hathaway.”  He doesn’t need to.  He just states his view–take it or leave it.  Warren Buffet is of course unique.  Yet, there it is.  We mainly just listen to what people say.

 

The more we know about the stocks we own or like, the better positioned we are to evaluate any opinions or arguments offered by analysts or money managers.

The “stock whispers” roaming your workplace or living next door will not be there for you when the stock they flogged folds up like some metal chair.  At that point you will be asking yourself “why did I buy this again?”

 

Bring Your Own Research to your stock party.

 

The stock party transforms dramatically when you  know your own reasons for owning a stock.  Do your own research.  Create your bullet-point  list of precisely why you bought a position.  Avoid the pitfall of second guessing.  When the stock party music stops, you’ll at least know what and why you were there.  If your portfolio is also diversified, as well as researched, you’ll still have a chair when that lovely exuberant  bull music quiets.  Nor in that temporary quiet will you be searching your phone for comfort.  You already provided your own.  It’s called due diligence.

 

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 “What’s our broker’s number again?”

 

Remember that Enron meeting where the over-amped woman flogs the crowd of Enron employees?  This party goer boomed shamelessly that employees “should have all their money in Enron stock.”  And many people did.  Smoke yet curled the  party even though the action was over.  Don’t be discovered staring into your phone when the music stops for your stock.

Know by  bullet-point why you own it.  Then you gaze into the mirror.

 

 

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StockJaw

Images sourced from Pixabay.

https://pixabay.com/en/photos/

 

Additional resources:

http://www.investopedia.com/

https://www.schwab.com/public/schwab/client_home

 

 

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