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awallejr (79.94)

An Investor's Goal

Recs

3

May 25, 2008 – Comments (3)

I like to invest.  I am very bad at trading (mainly because I am spineless and pull the trigger too soon).  I was always like that at the casinos too. If I ONLY I let it ride one more hand. I started playing the market end of March.  My plan was to invest mostly in high dividend paying stocks (minimum 3%) with 5 year capital appreciation potential.  I figured no matter how the market went in the short term I was still pulling in those dividends.  So off I went trying to build a portfolio.  Most of my picks here I own (some I don't but I wanted). Every pick I have made I believe in (I am not interested in "winning" any ratings game here).  I accept the fact that I will not be right 100 pct of the time.  I try to think in terms of 5 years from now.  That ain't easy.

 I watched all the economic shows.  It became somewhat humorous watching them daily.  Commodities control, doom and gloom.  Next day commodities bubble, financials rule.  Next day oil rules financials in deep trouble.  Lately I started watching ESPN and Monk.

In addition to my dividend strategy I bought some nondividend paying stocks with high betas that I believe will continue to rise over time with the express purpose of writing calls off of.  I always write calls off the stocks I own for prices way above my cost.  I figure if the stock gets called away I made a profit off the stock and I got to keep the call premium to boot and if they didn't get called away I keep the premium and  rinse repeat (Agu and Mos have been working great so far for me). 

I think my strategy should work over time, and I think it should work bear or bull market,  but when you have a rough week like last week with the Dow dropping 500 points and you see all those "reds" in your daily portfolio panic seeps in. 

I can't short stocks.  I am a bull in nature.  I prefer rooting "for" as opposed to rooting "against."  Personality quirck I suppose.  I'm just curious how people would classify themselves, namely as "investors"  (looking at the long run) or traders (churn those profits quick).

 

3 Comments – Post Your Own

#1) On May 25, 2008 at 6:24 AM, TMFRosetint (99.51) wrote:

A mix of both. Most of my money is in Dow & S&P index funds and I have some dividend-growthers, but I also arbitrage a bit and have some growth companies that I believe are trading at a heavy discount to their value, like HOGS and HANS. My CAPS portfolio doesn't look much like my real portfolio, to be sure.

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#2) On January 15, 2012 at 11:07 PM, HarryCarysGhost (99.78) wrote:

Nice Man,

good call.

I've been focusing on drip's for a few mnths now. Seems like the safest thing to do.

You just might of been a bit early with that call...; )

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#3) On January 15, 2012 at 11:48 PM, truthisntstupid (95.55) wrote:

Sounds a lot like me. I like to try to pick stocks I think are fairly or less than fairly priced, caring only whether I believe the dividend to be safe. Either dividend growth or higher-yielding (above ~ 4%). From there, I stay focused on whether the dividend remains safe while watching my dividend-adjusted price steadily decline.

Price drops are a gift, not a curse. It sucks more when one of my favorite income stocks goes up 40 or 50% and stays there for most of a year or longer and I want to buy more, but want it to come back down first. I couldn't care less about diversification but at least if I own 3 or 4,I can choose to put more money in whichever one will give me the best bang for my buck at the time.

If the company's financial strengh remains unchanged and the price drops and stays down, then I have more time to buy more at a higher yield.

That's the way I play it in CAPS, and that's also how I invest.

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