Best strategy I've ever heard.
That's why some are millionaires while others keep their depreciated dollars under their pillows.
That's not really a strategy, but a fact of life. Over the years what I have taken notice to is that a lot of amateur investors will sell off as soon as the market goes down. They fear that a crash is imminent. Wise investors will leave their holdings intact knowing all too well that the market will always rise sooner or later. We saw this happen in late '09 and early '10. A lot of investors pulled back as the market plunged to new lows and the Dow settled at around 6600. The smart investors, like Buffet, bought all they could knowing that the market would turn around and their $5.00 GE stock and $83.00 Apple stock would soar sooner, rather than later. I bought a lot of $5.00 GE stock during that period of time. I also bought the crap out of Southwest Airlines (LUV) and made a lot of dough. I did loose on a few. Boston Scientific and Sprint did not fair well, neither did Sirius-XM and GM. Yeah, I bought GM at $3.00 and lost it all, including my GM bonds, but made money on Ford (F), which I also bought for $3.00 in March of 2009.
I use several bond and emerging market funds to hedge my losses. I gave up on commodities. They have been going all over the place. When they settle, then perhaps I will invest in some.
My strategy has always been to follow investors like Warren Buffet, Bill Miller, Peter Lynch and Jim Cramer. I can't buy in multiples like they do, but I can buy what they buy, just less of it. My Scottrade account has soared since 2010 until now by following the money. I used to be a day trader on my days off from the airline, but now I just sit on the sidelines and watch what others are doing. It's fun to see how different investors react to the markets. Sometimes, I will jump in and buy something. I bought Apple a while back at $118.00. It is easily a $200.00 stock now, so it is undervalued. With all the cash they are sitting on, it makes them a worthy investment.
