One ambiguous thing about the CAPS "game" is that it doesn't reflect the real world. For example, when you make a pick in CAPS, your pick may not actually be a security in the S&P 500, yet it is compared only to the stocks of the same ilk in the S&P 500. [more]
Watch my picks - monthly I will review each company which may result in culling of the herd, slight rebalancing or adding - corresponding to the numbers...always the numbers. But, most likely the majority of these are keepers for the next 365 or so (long term gains...not short). Culling, rebalancing and adding will always come (if merited) on the first or last weekend of every month, or prior/following any major economic season/event. [more]
You know what to do.
But do it judiciously - just because its on sale doesn't mean it's a good deal.
You read about it everywhere. So why don't you put all of your money into it? Oh, that's right, you don't (like most of us) have $109,255 per share for BERK.A or even $3635 per share of BERK.B to shell out.We've always got the Fool. The Fool is great at beating the S & P. But what does that really do for those of us who see things a little differently. The S & P is a great gauge, but it is not the definitive and only gauge by which investors and traders mark their successes and failures.I have determined that my style is not the buy and hold style, even though everything you read screams "BUY AND HOLD...AND HOLD...AND HOLD." According to most financial analysts and columnists, this is the definitive strategy if you want to amass a fortune over the course of 40 years. Who am I to argue with this proven strategy? Just pray you don't get hit by a bubble burst during the last of your 40-odd year of investing. Think about it; you make better than S & P gains for 35 years on the stocks you have held for the long term, and in your 36th year, the stock market decides to take a vacation for the next 5 years, skimming 30% of the value from your portfolio to pay for its getaway. Not a happy time for most Long Term investors who don't have well-planned exit strategies in place.The other scenario is the Day Trader (or gambler) scenario. Traders spend all day, every Day Trading day, in front of their computers setting up trades, complex matrixes and algorithms and getting grey (if they have any hair left in the end) in the process, just to eke out a living. I realize that some Traders, just like some gamblers, are very skillful and successful at what they do, but in general, Day Trading is a losing proposition.Out of the two styles, I believe investing over the Long Term is suitable for the majority of passive investors.But there is another way that nobody every really talks about...short term investing with the vigilance to go long (I'll call it Short Term). It's not Day Trading (which is more about trends than anything else), and it's not Long Term investing, because we're not committing to any particular time frame, rather, we're committing to the "tale of the tape."Not only is Short Term available for everyone (including retired folks who would like to make more than 5% on CD's), but it is a more effective than Day Trading or Long Term Investing for increasing your stock holdings and liquid assets over the long term. The kicker is that with Short Term, you will often go long, but you'll always be on top of your stocks, not based on charts, graphs, triangulation and funky curve systems, but based on facts, so you'll always know when it's time to sell, buy and hold, even when everyone else is to the contrary.The Fools are somewhat Contrarians, so they might appreciate this. But rather than actually tell you how I do this, I'm going to show you how it is done. Over the last year I have had the good fortune to fine tune Short Term, and I will demonstrate its effectiveness to anyone who wishes to follow my picks.My previous, long list of picks has been pared, and now what you see in my CAPS account are all Short Term picks, based on my Short Term investment strategy. I'm really going out on a limb here to show this, so if it doesn't demonstrate itself well, then I'll just have to close my account, put my tail between my legs and slink off into the shadows.Yes, my friends, I am giving you an opportunity to create your own little Berkshire Hathaway...at affordable prices. Just watch, toward the begging or end of each month when my new picks are added (meaning I've purchased them), and previous picks are either held, or removed (meaning I've sold them). Then keep in mind that gains are reinvested, not used for frivolity and fun. So keep a Long Term mentality for the capital generated with this Short Term strategy to avoid the pitfalls of celebrating your successes as we all make allot of money over the next years.Have fun. Let me know what you think. And watch your riches increase exponentially.
Fool On! [more]