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Vindication at the polls?

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December 30, 2006 – Comments (0)

As I sit here writing my first "Blog", I have a rather unimpressive 5.89 Player rating. I am heartened by the famous quote that "In the short run, the market is a voting machine, but in the long run it is a weighing machine". I have personally seen this in my "real" investing strategy. It seems like every "wise" investment I have ever made seems foolish shortly after I make it - because I like undervalued stocks - that's my "style", if you will. But stocks are undervalued for a reason - they are not "popular". And just like the nerd in High School who goes own to own a technology company and make millions, this path to fortune often takes time, and a lot of "grit".

Like any voting process, you often don't know if you've made the right choice until years down the road. You'll notice most of my picks have time frames of years out - I have learned this by experience. But picks like USG, ConocoPhillips and others have brought long-term "vindication". The trick I still haven't learned is to sell when stocks become "too popular" - like the High School Star Football player at his zenith, their market value may be topping out with their popularity. Again, trouble is that in the short term, spikes can be misleading.

I wish all who read this post (bless you for your patience :-) a FANTASTIC 2007!

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