re: Buy and hold

only thing I will add is :

Often, the trading strategy that failed over the previous "investing cycle" (decade?), is usually the one that will work over the next....

I like both strategies depending on the stock

To beat mutual funds? Yes, by using ETFs that have no loads and accomplish the same thing. I thought this recent article was pretty interesting.

quote:

---

Compare various funds with good management and superior market performance in their category. (Morningstar Ratings,

---

Numerous studies have been conducted regarding M* rankings. The vast majority of 4 & 5 star funds lag in future years as hot money finds the funds after the run up and managers struggle with fund bloat. Investors can do what they want, but it is sensible to me to use low cost index funds for at least half of ones equity holdings to ensure market returns and reduce costs, especially small cap international, etc, that are very expensive to access through actively managed funds and maintain balance in one's portfolio, a concern for those who have significant assets. It's a lot more difficult to recover from high equity exposure portfolios that get smoked compared to one's with more diversified holdings, ie fixed income and other less traditional assets.

There is no substitute to buying equity when it is cheap, and holding cash or ST bonds in your portfolio provides immediate access to good buys. I still think those that have no interest will benefit most from 40/60 to 60/40 equity to fixed income range as they are less prone to taking knee jerk moves after getting a YE statement showing their life long investments are down 35%. There is a reason for investor returns in funds being significantly lower than the funds' returns, and it is bad timing and rash decisions for the most part.

Why buy and hold is dead (or terrible advice)

Slides 9-15.

quote:

---

Why hold dips? Why take two steps forward and one step backward over and over again? Why not take two steps forward, pause, and then wait until it's time for you to take another two steps forward.

---

Completely agree. You should always dump your stock the day it hits a high, and buy another the day it hits a low. If you cant find a good investment at the bottom, pause until you do. Repeat process and become rich.

Btw, can you forward me to the site on the internet, book, etc. that will tell me how to predict this ahead of time. Cause as far as I can tell unless I know ahead of time what a stock will do, the above strategy will not work.

Thanks in advance

LINK

Thanks a million! Literally! This "Technical Analysis" you speak of can acurately predict the precise swings of the stock market?!! Truly incredible. How come every one does not employ this amazing strategy???

quote:

---

Redstick - are you still a buy on LPIH right now at $2.69

---

Yes, I would buy 2.50, or 2.69, or 3.00, or 4.00, or 5.50, because I think the fair market value for this issue is at least 6.50, based off of fully diluted EPS guidance for FY'11 (which begins July 1) of .65. The reason the FMV is likely higher is because it is unlikely that their outstanding warrants will all be exercised in FY'11, which gives me an EPS estimate for that FY of .71, with the upper outlier being .75.

The company has applied to be listed on the AMEX. They meet all of those requirements. I think we can expect to be listed on that exchange in the next 120 days Once listed there, I think we will be rewarded a P/E of at least 10, which is where I derive the 6.50 figure.

All of this is from the standpoint of someone who is buying this one for the long(er) term. Short-term swings should be carried out according to your own discretion.

This is one of the few that I am "buy-and-hold" on, as I've made very clear.

IRLD I will look into. But most of the OTCBB stocks that I purchase are Chinese and/or other foreign companies. The OTCBB exchange is a popular exchange for foreign companies as it gives them a way to get around the outrageous listing fees required of foreign companies if they choose to be listed on one of the big boards (see Nintendo, for example). As for American companies who are listed on the OTCBB, I tend to stay away from with the exception of a few diamonds in the rough, as there's really no reason for any legitimate company not to be fully reporting, and this such occurrence is often the case with many of these micro-cap companies.

Is IRLD fully reporting? Are their financials audited? How far along in the mining cycle are they? What is their history re: dilution? And do they have the funds they need to continue operation, or will they need to dilute in the future?

quote:

---

You should always dump your stock the day it hits a high, and buy another the day it hits a low.

---

This is where you mischaracterized what I said.

I never retraced anything. I identified two classes of investors. The individual investor who should employ TA (which is growing rapidly). And the investor who would rather his portfolio be invested via some small-shop finance firm by some guy making 70k who's yet to pull his first 10-bagger from the market.

Look, man, I'm not here to convert you over to finding value in TA. I myself have said numerous times that any healthy investment strategy includes both TA and FA. You do what you do and I'll do what I do. End of discussion. But there is not a chance in hell I will ever consider investing my money with one of your types.

EDIT: I tell you what. Tell me a stock you think is a good buy. Then tell me why. Then tell me at which price you think is a good entry. I'll follow suit and we'll see who's right.

Brah, amsterdam wouldn't know FA if it slapped him in the face.