Relax...Enjoy...Relax
Research for Online Investors

by John Dalt

5/11/11

Relax…enjoy….relax.   I talked with a subscriber yesterday, who happens to be a financial advisor.  This is one of the great joys in running galtstock.com.  Comparing notes with our subscribers, discussing economics and what we see on the horizon.  Where are the opportunities?

Everything we do is to help investors afford yachts.  Maybe you don’t want a boat or ship.  Maybe you want security to enjoy retirement without ever having to tell your wife she can’t have something.  Perhaps the ability to travel without worry is important to you.  Maybe you are like most of us.

What I care about is the confidence that all will be ok, and the way to gain that confidence is what I want to address today.

Talking with professional money managers, and financial advisors, there is one common concern I hear.  Many new customers are impatient.  It is the one basic rule Galtstock has in every one of our premium services.  Slow down and enter your positions slowly.  Don’t let money burn a hole in your pocket!

You have spent your whole working life accumulating your nest egg.  Take your time putting it to work.  I am not writing this today because the market is close to three year highs; my advice would be the same if the market were at three year lows, or anywhere in between.  Whatever your investment strategy; identifying value stocks that pay dividends you want to hold long-term, selling covered calls for income and short term capital gains or swing trading…take your time.

Long-term investing might take you a year to identify 20 stocks and buy them at the price you have identified as your ‘safe’ entry point.  That would mean buying three companies every two months on average.  If you made a mistake and lost one or two on trailing stop losses, it could take eighteen months before you were fully invested.  In fact, I would ask, why would you ever want to be “fully invested?”

It is always nice to have some dry powder to be opportunistic.  When you are close to being fully invested is the time to look at what to cull out.  Which stocks have been underperformers?  Maybe they didn’t live up to your expectations.  Maybe they have outrun your wildest expectations, and now do not offer the same value they did when you bought them.  This is not trying to ‘time the market.’  What we want to do is enter over a period of time at a value price on each stock in our portfolio.

After you have a developed portfolio, you can spend your time looking for new opportunistic buys and eliminate holdings that no longer fit in your portfolio for any of the above reasons.

The word I haven’t used yet is one you should use, a “plan.”  Have it, use it, live it…and relax…enjoy.

If you find yourself bouncing from one idea to another with little success, take a look at our Long-Term Portfolio service.  We make it easy to invest in stocks so you can sleep at night!

Quote:
The information contained herein, while not guaranteed by us, has been obtained from sources which have not in the past proved particularly reliable.---from the foreword of “Where Are the Customers Yachts?”...my next read!

The mailbag:
It's time to impose offset demands on Chinese companies exporting to the USA.  The PRC is aggressively imposing a variant of an offset on us (i.e., we can have access to their markets only in exchange for our critical technology); we need to turn the tables on them.  Offset demands have been assessed against US defense-contractor exporters for years with great success by our trading partners, not just the PRC.---subscriber J.R.

John’s reply:  I am a believer in elegant simple solutions.  Thanks.

The information presented in this newsletter is based on generally available news releases, corporate filings, current events, interviews and the editor’s opinions.  It may contain errors and you should not make investment decisions based solely on what you believe you have read here.  Do your own research, it is your money.  If you lose it, it is your responsibility, not ours or your grandmothers!  The editor may or may not have a position in any securities discussed.  The editor may have held a position in a security earlier, or in the future.

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