Thursday, March 21, 2013

I'm going against the current (or whatever)

Hey Financial Freaks!

I read all your blogs and articles and I have to say something: «Are you nuts?»

That's right. People are buying like there's no tomorrow. What is that?

Apart from POW, ABX, SU and other slumping underrated (and excellent) stocks, I wouldn't know where to look at.

One of the main rule we learn in investing books (and in those financial articles) is to go against the current. Right? So right now, the bull market has been in full swing for quite some time. Something's gotta give (not me!)

I keep away from the market and pray (sort of -- I'm not that religious!) for a correction.

Actually, at the moment, the most sensible thing I've read from a fellow blogger is a post about how he bought a gold coin! Well done. Especially in the wake of what's going on in Chypre. Apparently, your money isn't safe in banks anymore.

Meanwhile, Mr. Taxman has been kind to me and has given me back money (I had previously given him!). We expect a total refund of roughly 5 K$ Cool. I am still waiting for 1,3 K$ from that money.

What did I do with it? I paid my margin and Visa. My 2K$ debt has been totally erased. Actually, I should have paid it earlier with the cash sitting in my account. Go figure.

So my Net Worth has changed a little -- for the best. Check it out here. Let me know what you think.

Why are people so bold? Tell me. Are you also buying at the moment? Or are you like me and try to have the best possible margin of security by buying as low as you can?

I want to know. Tell me Freaks, « Is greed good?».




3 comments:

  1. Thanks for the mention. I'm looking into more farmland at the moment. Just heard land rental rates are going up in the prairies because farmers are making more from crops. Wheat is at $8 a bushel now and canola is at $14/bushel. I would like to buy more stocks, but will maybe hold off until later this year like after May. Getting in now might not be a good time because April and May are historically under performing months for the stock market like last year ;)

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  2. I've been making a few buys but nothing too drastic. I think it's still prudent to make some buys, but it really depends on how much capital you have to invest. If it's $500 or $1,000 a month then I'd be waiting for great values, but since I can save a huge chunk every month I still look to make one purchase every month to increase my dividends. I've been going with more puts recently to generate some kind of return and with a cost basis if executed at prices that I'd be buying anyways. It's worked out pretty good so far.

    Although in every market there's something that's undervalued.

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  3. Hey PIP! You are absolutely right. I have to make amends, and I have to write a post soon because I made two buys in the last couple of weeks. Those were small ones though. And I will explain why later on this week. The point is, though, that I prefer to buy chunks of stocks at once (usually 4-5 K$). It cuts down your commission fees and enables you to really pay for a price you feel comfortable with. Then again, it takes a lot of patience, a good correction and you end up losing a little bit of dividend payments along the way. Thanks for dropping by.

    I wanted to write to you lately to thank you and congratulate for your JNJ analysis. Great post. As you might know, JNJ is my biggest position. It was even bigger not so long ago when I was holding more than 200 shares... now it's down to 141. A man has to be careful even with great stock like JNJ.

    Take care!

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Thanks a lot for your comment.