A Patient Investor
I was just thinking to myself today about being an investor in the companies I had suggested in my Loyal3 10 Stock Plan and how watching TV of the undiversified panel at CNBC might cause you to think you always need to be moving and shaking everyday in the stock market around a whole bunch of different stocks. Truthfully, I have had to learn myself, how to be extremely patient and possibly even turn off and tune out the information of what’s going in today’s market. The stock market is hard to predict or explain even why it does what it does and for that reason, I’m suggest you have to have conviction with some of the stocks you pick or with the overall composition of your portfolio and just keep investing in them over the long haul if the companies continue to show sound fundamentals. I notice myself, I have trouble with thinking long haul sometimes and I just want to see some explosive growth in a short term, but in reality stuff takes time to grow and mature and you just need to allow for it to do so. So often, I see the price of a stock I have go down in price and I wonder what happened and when I look to search for some piece of news that might suggest cause for this reaction, I find nothing. Say for instance, if I had little conviction and I had sold my AAPL stock when it was down as low as $89.47 when something like a price dip were to happen. I would have lost my position due to market shortsightedness and missed out on the run it has had since that time.
Invest In Mutual Funds ?
class people should do less of is leave their investment decisions entirely up to someone else. Or let me say it another way, we should half way understand ourselves how to invest before handing it over to someone else. I say this not because the person managing your investment is not professional and trustworthy, but in some cases they are not working in your best interest, but because you need to know what you are investing in and why; otherwise, when things go bad for the short run and you lack conviction, you in your lack of knowledge will ask to sell, perhaps, against the better judgement of the professional. Since they cannot refuse you, you will lose and come away having a bad experience of the whole matter. But who’s fault was it, your financial advisor or yours? Educate yourself about personal finance and investing!
commissions. She will have a somewhat limited mutual fund of 10 stocks, but nonetheless, fantastic companies that are growth and value oriented in nature. I will not say the charts below tell it all, but in a way they do, as these are well run companies, which I don’t see going anywhere for foreseeable future. I would invest in these and I am investing in these. She could split dollars between this and a diversified portfolio of free index funds or ETF.
The Ten Stocks
Facebook (FB)
Apple (AAPL)
Amazon (AMZN)
Netflix (NFLX)
Google (GOOGL)
Disney (DIS)
Walmart (WMT)
McDonald’s (MCD)
These are all 10 year charts of the 10 stocks and when you look at the charts, most have the shape of a ramp in how they have grown. We all wish we could have gotten in at the bottom of the ramp, but would that really have made a difference if we were not the sort of investors that rode out all those little dips and valleys? You see the charts are what appears to be their peaks now, but I ask you to imagine if you think the charts will look any less like a ramp 10 years from now? I am putting my money on the upward trajectory to continue and my small $225 investments resembling these charts shapes in its growth pattern. Inform yourself and if you feel this 10 stock plan can be a good start to your own personal mutual fund, then start investing $100 each month consistently, and learn to yourself be an informed and patient investor.
In Closing
Today, middle class people are being asked to play a different role than they are used to playing and that role is investor. We so shun the role, that we would rather have someone else do it for us, but if we unshackle our minds, we would come to find that investor is the best role to play. We would see the opportunity to create our own mutual funds like this 10 Stock plan represents and we could feel confident that we can steward our own financial futures. Take the time and be patient with yourself and educate yourself to be astute financially. Your well being depends on it.
Links to Loyal3 can be found here under Investing section of my blog. The original blog for this content is below:
