Thursday, May 27, 2010

BAGAKOAA May 27, 2010 The rest of the work. . .


May 27, 2010 The rest of the work. . .

We got Banking, Oil, Aerospace, Tech taken care of so that made for a pleasant day today in the market. Over the weekend we will look at Retail, non tech electronics, and more industrials.

That feeling good stuff was in the air in Europe and Asia as China said they are in the Euro Long term. That settled the markets and made for a nice opening here in the states. Economically, the news was not great but you would never tell it from the 284 point jump. The two areas of not so good news was GDP adjusted down. (Got that one wrong), and jobless numbers were softer than expected.

Anyway, it is late and I just enjoyed a great evening with my wife and my daughter, so the only thing that is necessary tonight is fundamentals. After watching Cramer on DVR, it became clear that getting back to fundamentals was what I needed to do this week and I have.

If you are fortunate to have access to Real Money Silver, you can see Cramer’s 25 rules for investing. We find these more important than the actual stock tips themselves. I went over Rule 20 tonight. Giving up on value is a sin. That is exactly what I did on Tuesday. I walked away from 15 stocks who all had great earning potential, and that is what you buy when you commit to a stock.

I can't give you verbatim the words Jim uses in this rule, but I assure it’s worth a read. Don't dump a stock that you believe and you have done the homework on now because it is not performing as you think it should. Be patient.

Last year I read all 700 pages of Snowball, the biography of Warren Buffet. I learned he had two characteristics that most investors lack. And I proved it this week. I had no focus and I had no patience. He has an incredible amount of both. And he has about 50 Billion Dollars to prove it.

Salve Lucrum


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