
Since I write so many posts on here, I wanted to let you the reader in on my investing strategy and exactly what I try to accomplish. When I manage my portfolio as well as others portfolios my main goal is to beat the market over the long run. I fully believe that the equities market is the place to be over the long run and statistics have proven that. Certainly there are times when I want to cut back my exposure in stocks and invest either in money market accounts, CD's, or bonds. I find it is always a good idea to keep a small amount of cash in the investment portfolio as well, in case you find a good value and need the cash quickly. It is very rare for my portfolios to ever get above 25% cash, since I believe in the long-term bull market. ![]()
Though many have gone into daytrading, I am a long-term investor. Daytrading is something that most fail at, and I believe that most people are better off sticking to fundamental investing. I do rarely make a short-term trade based on upcoming events, but even these positions I generally hold at least a few days. The majority of my portfolios are invested in positions that I have held for more than one year, and that is exactly how I want my portfolio to be.
I follow the Peter Lynch train of thought in that if you continuously try to sell your winning stocks after a 50% gain, you are likely to miss out on some truly tremendous gains. My objective is to find long-term tenbaggers, though a mere fivebagger is fine too! A short-term trade is one thing, because in those you must not be greedy and should take your profit, but in a long-term growth stock I generally let it run. I attempt to find growth stocks from a variety of sectors and market caps that are attractively priced and have a strong financial position. I firmly believe that studying a balance sheet and income statement, along with financial ratios are a must when looking for long-term winners.
I keep my portfolios as diversified as possible, since diversification is so essential to any investment portfolio. I like to use dividend-paying stocks in some situations, and also buy some international stocks when I find values. I like to maintain a couple of top large cap growth mutual funds in my portfolios at all times. Keeping trading fees at a minimum is another goal of mine, since that can eat into long-term performance quite severely over time.
My investment strategy is truly not that complex. It is a strategy of valuing companies through fundamentals and finding top growth stories in all industries. Investing and portfolio management is a true passion of mine, and I believe the key to a solid investment strategy is simply doing your homework and having realistic performance goals. Too many people set unrealistic goals and then end up pulling out of the market because they are taking too many risks. My strategy is to fundamentally analyze my portfolios and constantly look for new ideas, ideas that I will sleep well at night holding.






Comment Preview