Keeping track of your investments
"The speed of business is higher, and the speed of business change has increased. To hold a stock with a long-term goal of forever is a great idea, but things change so fast it just may not be possible."
Supposedly, a value stock was to be acquired and kept for a long time, even a lifetime. True, but especially in today's world of change, business fortunes can turn on a dime, either as a result of macroeconomic and industry factors, or micro problems that escaped your initial read and surfaced during ownership.
According to a recent study, the average stock fund holds a stock for 1.2 years, down from 3 years in 1976. Some funds "trade" actively, but most don't - they simply react to change in business and business conditions.
The point is that you have to keep up with your investments, even after purchase. If you were fortunate enough to do a good job up front, nighttime sleep should come easy. Stability and consistency are good things to have. But no longer is it possible to buy a company and stuff the stock certificate into your mattress. Even Buffett sells shares, and sells them every year.
The best way to keep track is to use many of the same tools used to make the investment decision in the first place. Watch the financials and intangibles through Yahoo! Finance, quarterly Value Line updates, and of course, the newspaper. Repeating the "short-form" appraisal every now and then doesn't hurt either.
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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