Friday, May 18, 2007

My Investment Style is like Reagan - Trust but verify


I suppose we all look at our investment style and consider how we might change. I have always been pretty consistently a "let it ride" sort of investor.

That is, I will analyze a situation, look for areas to invest and then pluck money in there for the long run.

In fact, I only invest for the long run....I mean that's what I always attempt to do anyways....but I am always "looking over my shoulder" looking to pull out if it gets uncomfortable.

Yes, I am mostly a long term "buy and hold" guy....but I'm NOT the "set and forget" type. Nope, I am more of a "Trust and Verify" person.

I have heard that Warren Buffet is the type of investor who "doesn't like to lose" money. Not that he never takes risk, but that if the risk begins to falter, he is out of there before his investment goes to zero.

I am the same type....I sort of "look over my shoulder" every week or month and make sure things are going at least the right way. (not negative.....and if it does, I am ready to pull the trigger and get out.

But I don't pull the trigger all that often.....I do have patience and I do understand risk.....I am just not ready for my money to go to zero.

Take my most recent year with some "Mad Money". I had initially bought $3000 in Vonage stock....something like 100 shares....I forget.

Anyways, we know what happened to Vonage....and it was right after I bought that things began to go sour. The price of Vonage was sinking, and I wanted out.

I first sold half of it for about $1000 and invested in China Mobile. About two months later, Conage had gone down and then back up....where I sold the other $1000 in stock and bought a Hong Kong ETF.

Well, I would peek at these prices for the last few months....and I am happy to say that my initial investment of $5000 had fallen to $2000 but as of today (5 months later) it has grown to a bit over $2830! Pretty good!!!

So that's my investment MO....."buy and hold" with a fair bit of "Trust but Verify

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