Making money in stocks

John


There's some truth in what you say,however, there are also some big mistakes.Lets take an example;Warren Buffett bought Coca-Cola share in 1988 when he saw that their international sales were exploding internationally he bought more shares in 1992 and still holds all those shares today. He has owned those shares for 13 years through thick and thin. Recently Coca-cloa shares have not done well yet he still owns the shares why? Shouldn't he sell all those shares since there were times when Cokes shares were overvalued even according to him.He did not do it because he bought a great company at a great price and has held on through all those ups and downs in the market because those temporary tremors come and go in the market. He has made a lot of money on Coke somewhere in the neighborhood of 15-20% compounded and paid no taxes.


You say market timing is the only way to go well i think we have a different definition of market timers.Joe Granville is a market timer,Richard Ney is and i could list many more and their results have been terrible.However,in a way the guy that buys seasoned companies when their out of favor are sort of market timers yet they are not tryng to predict where the market is going.Let me give another example;last year if you would have been a market timer you would have said stay out of stocks because the market is going down and you would have been 100%correct. Yet the investor that bought the property/casualty companies has doubled his money in the same period that the market went down and would have missed a big move.Instead the investor who focused on buying quality companies when their out of favor and let the market take care of itself would have proved again the benefits of this approach.


People constantly try to take a simple approach and make it complicated.I've given many examples and backed what i have said. Yet i have no examples from the people who have responded. Show me the market timers that have made money and kept it.I hear talk but i see no facts.Lar

most of them are called hedge funds and the best have outperformed the SP in most years. Some years the return was 100% or like it. Do some research of the best hedge funds and you will see it for yourself. I have no interest proving anything to you. They all timers. Some went even short of the naz 2 years ago. Some just a few weeks back. They are making out better today than you I suppose. The timne frame is quite consistent some go back ten years. Buffet had years when his returns were crap too. 20-30% per annum. Timers can make 1% a week.

Hmmm...you didn't get it. Oh well.

http://cbs.marketwatch.com/news/story.asp?guid=%7BF2FC1DBA%2DF724%2D4529%2D8AB8%2D17A8409F8F7D%7 D&siteid=mktw


This guy is not the brightest of the bunch. This article is fun

and interesting. Some of the worst Mutual Funds for the ten

years. Mutual Funds are the worst timers. I should rephrase

the worst Mutual Funds don't do timing. Some do. Some of course

are just indexes BECUSE they realized you can just buy and hold.

Most investors in these funds I think are braindead for years or really dead. [img]/images/wink.gif[/img]

The author is a fool. The top performing large growth funds are in tech and the bottom ones are Japan. Of course....it doesn't mean anything in the future. If this guy thinks Japan is going to have negative performance over the next 10 years he is on crack.

As usual i see no facts just talk.In regards to hedge funds there are a couple that have done well namely,Julian Robertsons tiger fund and George Soros'fund. But they are few in number and probably way beyond the average investors abiltiy.Your comments that they are doing better than me well if they are making 100%'year they sure are.However,i'll make a little wager that they won't keep those results up over the long haul.I shoot for 15-20%/year which will allow me to double my money every 3.5-5 years. I really don't care how i do in any single year since bad years are part of investing and i concentrate my holdings so that is to be expected.


Keep concentrating on the short term and thinking you can keep it up over the long haul and you have become the fool.I keep asking for facts and keep getting smoke so it is quite apparent you have nothing to back it up but hot air. As an aside one of the great hedge fund managers in the last 10 years was Michael Steinhardt but he closed his fund due to poor results.Unfortunately you guys don't get it but hopefully some people who have read the posts will and will become part of the small percentage of investors that make the big money and keep it.Good luck to all. Lar