"Hello Friends!" That's how I like to start all of my entries. Talking to all of you who I consider my friends and confidants. But perhaps I sometimes forget that I need to explain every once in awhile what all of these entries are about. Why did I write up these stocks? What is so special about them? And what is an investor supposed to do with all of these names?
Quite frankly, that really is up to you. And I would love to hear from some of you who use these posts to assist you in your portfolios. Have they helped? Did you make any money? Lose money? Or was what I write irrelevant to your particular strategy?
For me, these names that I come across would be what I would consider "quality" stocks. Quality can mean so many different things to so many people. I view a quality stock as the stock of a company that is able to consistently produce good financial results. O.K., what's "good" you ask. What I mean is that I believe that there exist out there in the financial world certain companies which will tend to outperform the market by their consistent growth in both revenue and earnings which will be rewarded by the "market" with an increasing stock price. These are the consistent winners. The fast horses at a horserace. Or the NASCAR drivers who seem to always be winning. These are the stocks I want to own.
I go through a rather boring process of examining stocks to isolate and identify these names. I really am an amateur so I don't claim any particular brilliance in this process. But I try extremely hard to be open and honest about why and how I do this. You certainly could also do the same. There isn't very much that I do that isn't easily copied.
So these stocks I discuss, as I have mentioned, become my "vocabulary" of investing. I want to put together these "words" into a "language" that becomes my trading portfolio. I am not sure which of the hundreds to actually own. But with a portfolio management system, I want to hang on to the strongest of my holdings and to part with the weakest.
Furthermore, I want to be able to respond to the market by either adding new positions or moving into cash. For this, I have chosen to listen to my own trading portfolio, sitting on my hands when I sell my weakest stocks on "bad news" by not re-investing the proceeds (unless I am at my minimum number of holdings), and adding a new positions when a stock of mine hits an appreciation target on the upside, at which time I sell a portion of that holding, and look to the market for another new position. (Of course, unless I am at my maximum size of my portfolio).
So as you read about the different stocks I talk about, I hope that you will learn to see them as I see them, as the companies among which I suspect we will find some of the top performing stocks of the entire market. I don't expect I will identify all of the best stocks or even a majority of them. I just want to find companies that overall will outperform a broad index of stocks. Just do a little better than average! I think I can do that!
If you have any questions about what I have been doing or writing about please drop me a line at firstname.lastname@example.org. Also, I would certainly love to hear from those of you who have found my reviews helpful, who maybe even have purchased stocks in companies I have reviewed. Have you made profitable investments, or have you incurred losses. Have you utilized my trading strategy? Or have you modifed it in some undefined improvement? Would love to hear from you!
In the meantime, have a great evening and I look forward to the start of trading tomorrow.
Updated: Thursday, 16 November 2006 4:57 PM CST