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Bmayo32 (49.33)

Confessions of a Gambling Value Investor

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June 23, 2013 – Comments (4) | RELATED TICKERS: GLW , BKE , BRK-B

I've read Phillip Fisher, Benjamin Graham, Warren Buffett, and Peter Lynch, so I should know how to behanve. 

I shouldn't worry about the gyrations of a stock price and should focus on the underlying business.

However, I now find myself checking stock futures before getting out of bed in the morning, checking stock prices on my cell phone while driving (which is illegal I think), and the last straw...I put my cell phone in a ziplock bag to check stock prices while showering.

I'm a dude. It takes me five minutes to shower. How much could possibly change in the five minutes I'm in the shower?

Ok, let's be real here. Gambling is fun; and the stock market can have some casino like qualities (sure wish I could order a bloody mary from my stock app on my iPhone), but I should know better.

I believe Warren Buffett being in Omaha gives him a supreme advantage over being on Wallstreet. Also, Sir John Templeton had the best performances of his life after he moved to the Bahamas and received the Wall Stret Journal on a one week delay.

Investing should be fun. If it's not, you're doing it wrong. But I need to derve more fun from learning about businesses, and less fun out of watching the stock price 'beep' and 'boop' all over the place. (Seriously, those noises are about to drive me bonkers.)

Ben Graham lays out a good strategy in The Intelligent Investor about a proper portfolio allocation. I'm currently in the range that would make him proud, and now I just need to let it ride.

Here's a new rule for myself to keep me in check: Check my stock prices only twice per day. (whaaaaaaaaaat?!) Once in the morning and once around closing time.

The stock doesn't know I own it. So habitually looking at it doesn't do either one of us (me or the stock) any good.

Since I don't look at the stocks as much on down days, if we get a huge market correction, I wouldn't need to take my own advice at all.

Well, here's to hoping that doesn't happen. 

4 Comments – Post Your Own

#1) On June 24, 2013 at 12:56 AM, awallejr (83.91) wrote:

Listen to ESPN ;p

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#2) On June 24, 2013 at 6:25 PM, ETFsRule (99.94) wrote:

I would say, check the prices as often as you want... just don't act on it :-)

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#3) On June 26, 2013 at 7:37 AM, Bmayo32 (49.33) wrote:

Thanks ETFsRule!

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#4) On July 06, 2013 at 12:32 PM, fooledoux (43.68) wrote:

I've found that the way to avoid trading too often is to write short term options on my positions (less than 30 days). I love my portfolio now( even the current losers) . I just need to hang on to it without trading for a while. Most options expire unassigned anyway especially if you write your bid so that the market has to come to you to buy and write at a strike that you would positively be tickled to sell at. If no one bites, then at least you have some orders to check on each day. I can be long term and still get my adrenaline fix. I am currently short about $98K on Calls expiring July 20 (DDD, WFM, KO, AAPL, KMI) 

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