Securities Investment Journal

[mimo_100]

Securities Investment Journal


After many years of intermediate term buy and hold, I finally
decided to do what my inner voice has told me for years -
start an investment journal.


Why? Because I buy securities for different reasons and I
also sell them for different reasons.


Some possible reasons to buy.


1. Looking at the fundamentals, the p/e is low, no debt,
increasing earnings, industry strength, highly recommended,
etc.


2. MrMarket, a successful momentum investor, wrote up his
latest purchase. After my own due diligence, I agree it is a
buy.


3. I bought it because Warren Buffet bought it.


4. A friend at the club gave me a "hot tip" - in the past he
talked about his winners.


5. It was one of the top 10 stocks owned by American Funds.


6. It is an ETF that mimics the S&P 500, is unmanaged thus
low expenses, and the market is the place to be for a
percentage of of my investment money.


7. They have paid an above average dividend for years and
they are an institutional favorite.


8. Lots of other reasons too numerous to mention.


Sometimes I make "winning" purchases and sometimes they
are losers. For various reasons, which you all have
experienced - from bad news, legal problems, fraud,
takeovers, earnings surprises..


So now I will write down why I bought an issue and why I
sold it. Hopefully over the months I can eliminate the losers
by identifying why I bought it in the first place. It will not be
perfect. But hopefully I can buy for the "right" reasons.

[billyjoe]

mimo, I've tried eliminating #4. I helps cut big losers, but there's still at least 1 each year.

----------------billy

[bigtruck]

mimo, I've tried eliminating #4. I helps cut big losers, but there's still at least 1 each year.

----------------billy

Billy -- I consider $$Ernie$$ a 'friend' now and I usually go with him when he provides a 'hot tip' . He's about the only one I will do that with haha