Investing from within the Echo Chamber

I love my DOGS. Everyone gets that knowing when to sell a stock is much tougher than picking the one to buy (or it is identified as one of the great shortcomings of the individual investor). Yeah, yeah, we make it easy for ourselves: simply buy high, sell low, right? And that is the exact reason why I love my DOGS: buy/sell decisions are based on my simplistic calendar and spreadsheet methodology. Is it November? Check. Is this stock Continue reading

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2014, the Home Stretch

Having built these portfolios around November last year, I’m getting to that point where it’s time to dig deeper into my holdings and review possible candidates. My rules stipulate that I track holdings for sudden changes, but yearly reviews include candidate comparisons and dividend distributions.

Before I get to the reviews including a a look at performance, I have to share this gem from Motley Fools –

Imagine you pick 1 million random people from around the world every day,” said Toby McDade, chief investment officer of Momentum Fee Capital Management. “Some days, 51% would be in a good mood, 49% in a bad mood. The next day maybe it’s the opposite. Other days, random chance could mean 8% of people are really pissed off for no real reason. This is basically what the market is on a day-to-day basis,” he said.

Asked what his clients thought of this view, Mr. McDade laughed. “Oh my God, you think I could tell my clients that? How could I justify my salary?” Clients were told Monday’s gain was caused by a mix of reversing geopolitical instability, shifting uncertainty patterns, a risk-on atmosphere, and a perfect storm of beta meeting sigma. Noone knew what those words meant.

  –http://www.fool.com/investing/general/2014/08/12/an-honest-stock-market-update.aspx

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Chevron reports Q1’14 results

In somewhat belated news, Chevron – one of my core holdings – reported Q1 numbers that were down from the previous periods and missed expectations. Investors, or rather analysts were looking for $2.47 on $54.B in revenue versus the reality of $2.36 from $53.3B. That translated to a drop of 6% in revenue while profits fell by 27%. Continue reading