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What’s The Hardest Part About Learning How To Invest?

By  +Follow December 9, 2013 3:32PM
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The hardest part about being a member of the value investing school in a rising market is sitting still.

When markets rise like they have this year then inventory pool shrinks pretty rapidly and there is not a lot to do.

The few opportunities that exist can be bought and then it all becomes about sitting still and letting the value of your holdings become recognized by the market. Strong markets are a great time to catch up on your reading or indulge in some much needed recreation time. If you have done the buying part of the equation correctly and purchased shares at a significant discount to asset value it becomes all about the waiting game.

The waiting game can be very difficult at times.

Look at some of the news headlines from around the web today. Carl Icahn is fighting with Apple over a buyback. Is Bitcoin the new gold? We will taper? When will we taper? Is China expanding or contracting? Wasn't that a great jobs report today? What's the dollar doing? Sears (SHLD) is spinning off Lands End. Is Facebook going to be a Dow stock someday? All the news flow and questions come at you at a rapid clip from the TV, the internet and even the newspapers for those who still get their news and information via dead trees.

Then you have to face the siren song of the touts and bookies that surround the market. Try my simple system that will make you thousands a day with no effort. Get in on the next big thing. Buy gold to profit from the end of the world as we know it. Buy these penny stocks now to benefit from the coming wave of cold fusion. The Never Wrong Fund is up big this year. Better buy now. Our research department thinks this stock can moved from 20 to 22 over the next year.

That's 10 times the T-bill rate so you should pick up a thousand shares today.

If all that's not enough you have all your friends and relatives adding to the pressure to do something. Your golfing buddy's uncle knows a guy who is a big shot at Goldman (GS) who told him that that Twitter (TWTR) is going to $1000 and you should get in now. Everyone in the book club thinks this Tesla is a good stock because electric cars are really green and green is a good thing for the future.

Your spouse wants to know how come you don't own Amazon (AMZN) in your IRA because you buy stuff there all the time. Your business partners met a guy whose kid made a fortune with something called candlestick charts and thinks maybe you should look into that stuff. The neighbor is trading options in his spare time at home after he's done with patients for the day and expects to retire soon from this endeavor.

It can be maddening.

It is enough to make you miss 2010 when no one wanted to talk about stocks and you were left in piece to accumulate little banks and REITs trading at half of book value. Even worse it can have you questioning your philosophy and process. Maybe you should see if you can use those candlestick cloud things to tell when cheap stocks are actually getting ready to move. That would sure improve performance. Maybe a little Amazon would be a good idea. After all you just did all your Christmas shopping online. Hey! I bet that's good for FedEx (FDX) as well. It is very easy to get distracted and wander out of class at such times.

In the long run none of this stuff really matters very much at all and it takes discipline to ignore the temptations and occasional doubts.

In the world of investing there are only two questions that really matter. Is this stock cheap when you compare the stock price to the assets of the underlying corporation? When you look at the balance sheet is this stock safe. Do they have adequate resources to pay their bills and survive long enough to thrive again? Those are the only two questions that really matter to those of us in the deep value school of investing. Answering those two questions will render all the other questions and exciting offers pretty much irrelevant. The difficult part is ignoring the noise and all those well-meaning folks who don't get the basic businesslike concepts of value investing.

Tim Melvin is a value investor, money manager and writer. He has spent the last 27 years in the financial services and investment industry as a broker, adviser and portfolio manager. He has also written and lectured extensively on the markets with his work appearing on RealMoney.com, DailySpeculation.Com as well as several print publication including Active Trader and the Wall Street Digest. Learn which 3 low risk, high yield stocks Tim owns for the trade of the decade.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


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Results for shld
Michael Torres, PhD
29 Jan 15 18:34:54
RT @OpenOutcrier: $SHLD Mar 19 put buyers, over 9k bought so far
HotKeyTrading
29 Jan 15 17:30:03
Trending High On Social Media: $FOSL $RCPT $CYBR $MELI $AVGO $ABMD $NCMI $ROST $ULTA $EOG $CY $MCD $MSG $SHLD $WSM $RH $RHT $ADSK $AAL $X
HotKeyTrading
29 Jan 15 14:30:03
Trending High On Social Media: $FOSL $RCPT $CYBR $AVGO $ABMD $MELI $NCMI $ROST $EOG $CY $ULTA $MCD $WSM $RH $RHT $MSG $SHLD $ATHL $ADSK
Robert Moulton
29 Jan 15 14:09:08
RT @SeekingAlpha: The Lumbersexual - Why A Fad Won't Save Lands' End http://t.co/N8XkUivTql $SHLD $LE
Lee & Zaneta
29 Jan 15 14:06:01
RT @SeekingAlpha: The Lumbersexual - Why A Fad Won't Save Lands' End http://t.co/N8XkUivTql $SHLD $LE
Quantpost Service
29 Jan 15 13:48:56
$SHLD News: "The Lumbersexual - Why A Fad Won't Save Lands' End $SHLD $LE …" http://t.co/rN2edUfTCl Board view: https://t.co/ehp4vhsWnJ
Seeking Alpha
29 Jan 15 13:48:55
The Lumbersexual - Why A Fad Won't Save Lands' End http://t.co/N8XkUivTql $SHLD $LE
Michael Torres, PhD
29 Jan 15 11:22:47
$SHLD usually bounces from this area. Let's see. Holding up well.
Usman zahid
29 Jan 15 11:09:06
RT @Bidnessetc: Sears Holdings Cuts 115 Corporate Jobs, Stock Sinks http://t.co/tVi0gIskph $SHLD http://t.co/SKfyVWw9du
JvilleTrader
29 Jan 15 09:57:52
$wres Now on sale at 2009 levels. Does K-Mart ( $shld ) have a blue light flashing in front of Warren Resources Office?
Market Int Center
29 Jan 15 09:44:34
Sears $SHLD Showing Resistance Near $34.67 ( http://t.co/NO8fyygvX8 )
Chris Brathwaite
29 Jan 15 09:24:34
RT @SearsHoldings: SHC Speaks: "Kmart ranked 19 in Top 50 Employers list for 2015 by CAREERS & the disABLED Magazine." http://t.co/bZxzDjid…
Chasing Stars
29 Jan 15 09:07:18
Stocks Trending Now: http://t.co/TOZZHCVUR3 $FONE $EQY $GALTU $NMNB $SHLD $VPFG $TRVN $GLEC $TMCV $GLAPY $SFBK $BLFS ~
Quantcha
29 Jan 15 08:37:12
Covered Call Alert: SEARS HOLDINGS $SHLD returning up to 34.14% through 19-Jun-2015 http://t.co/8Qljsw7SYr
Bidness Etc
29 Jan 15 08:30:01
Sears Holdings Cuts 115 Corporate Jobs, Stock Sinks http://t.co/tVi0gIskph $SHLD http://t.co/SKfyVWw9du
Wes Kennedy
29 Jan 15 07:34:58
RT @StevenPDennis: Sears cuts 115 corporate jobs http://t.co/C0tWvXgnOs The world's slowest liquidation sale continues. http://t.co/HPSzWrw…
Steve Dennis
29 Jan 15 07:33:10
Sears cuts 115 corporate jobs http://t.co/C0tWvXgnOs The world's slowest liquidation sale continues. http://t.co/HPSzWrwCWh $SHLD
Stockaholics
29 Jan 15 07:09:19
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/c7bXDM1sfp $XRAY $FOSL $SHLD
Ticker Report
29 Jan 15 06:11:25
Insider Buying: Bruce R. Berkowitz Buys 3,100 Shares of Sears Holdings Corp Stock $SHLD http://t.co/HLcN4HEFQ5
The Legacy News
29 Jan 15 05:43:46
Insider Selling: Bruce R. Berkowitz Sells 10,900 Shares of Sears Holdings Corp Stock $SHLD http://t.co/mZVSDaN3kt
Sleek Money
29 Jan 15 05:34:53
Bruce R. Berkowitz Buys 10,000 Shares of Sears Holdings Corp Stock $SHLD http://t.co/94aMsxs5Zr
HotKeyTrading
29 Jan 15 05:30:03
Trending High On Social Media: $FOSL $RCPT $CYBR $ABMD $MELI $AVGO $NCMI $ROST $EOG $CY $ULTA $WSM $RH $RHT $MSG $SHLD $ATHL $ADSK $AAL
WKRB News
29 Jan 15 04:49:06
Sears Holdings Corp Bonds Rise 2.3% During Trading Insider Trade $SHLD http://t.co/MircjS5Sr4
HotKeyTrading
29 Jan 15 02:30:03
Trending High On Social Media: $FOSL $RCPT $CYBR $MELI $AVGO $ABMD $NCMI $ROST $EOG $CY $ULTA $WSM $RH $RHT $MSG $SHLD $ATHL $ADSK $AAL
Anonymous Chronicles
29 Jan 15 00:31:19
RT @TroughtonRadio: $fb earnings -----> UP UP UP $shld earnings --> DOWN DOWN http://t.co/y3JnrljxJo
The American Baron
29 Jan 15 00:27:18
$fb earnings -----> UP UP UP $shld earnings --> DOWN DOWN http://t.co/y3JnrljxJo
Stock Rocket
28 Jan 15 22:27:29
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/zlcsLOoyXX $XRAY $FOSL $SHLD
StockNewsWires
28 Jan 15 20:01:03
$SHLD: Sears Holdings Corp major shareholder Bruce R. Berkowitz Sells ...: http://t.co/ppFgYYtAy6
ProVesting
28 Jan 15 20:01:02
$SHLD: Insider Buying: Sears Holdings Corp major shareholder Bruce R ...: http://t.co/lmW2wZ6Are
The Legacy News
28 Jan 15 19:57:11
Sears Holdings Corp major shareholder Bruce R. Berkowitz Buys 10,000 Shares $SHLD http://t.co/n6UQM9JUei
WKRB News
28 Jan 15 19:53:47
Insider Buying: Sears Holdings Corp major shareholder Bruce R. Berkowitz Buys 3,100 Shares of Stock $SHLD http://t.co/j6sVsn5ser
Shut In Oil Man
28 Jan 15 19:42:49
RT @intercooleronli: Sears Holdings Corp major shareholder Sells $381,064.00 in Stock $SHLD http://t.co/Hsm2saDHMo
Michael Torres, PhD
28 Jan 15 19:31:00
RT @AmericanBanking: Insider Buying: Sears Holdings Corp major shareholder Buys 3,100 Shares of Stock $SHLD http://t.co/j7CHH0vE0N
Michael Torres, PhD
28 Jan 15 19:30:35
RT @AmericanBanking: Sears Holdings Corp major shareholder Sells $381,064.00 in Stock $SHLD http://t.co/qMspjO1XNS
US Banking News
28 Jan 15 19:29:52
Insider Buying: Sears Holdings Corp major shareholder Buys 3,100 Shares of Stock $SHLD http://t.co/j7CHH0vE0N
US Banking News
28 Jan 15 19:29:50
Sears Holdings Corp major shareholder Bruce R. Berkowitz Acquires 10,000 Shares $SHLD http://t.co/ZuqP1aS9RR
US Banking News
28 Jan 15 19:29:50
Sears Holdings Corp major shareholder Sells $381,064.00 in Stock $SHLD http://t.co/qMspjO1XNS
StockNewsWires
28 Jan 15 19:26:01
$SHLD: Sears Holdings Corp major shareholder Bruce R. Berkowitz ...: http://t.co/DGVgTAWtGr
ProTradersNews
28 Jan 15 19:21:03
$SHLD: Sears Holdings Corp major shareholder Sells $381064.00 in Stock ...: http://t.co/UGW13wGTeE
StockNewsWires
28 Jan 15 19:21:02
$SHLD: Insider Buying: Sears Holdings Corp major shareholder Buys 3100 ...: http://t.co/lqDubojvLT
Sleek Money
28 Jan 15 19:20:30
Insider Buying: Sears Holdings Corp major shareholder Buys 3,100 Shares of Stock $SHLD http://t.co/xWnmH0TzhB
InterCooler
28 Jan 15 19:17:48
Sears Holdings Corp major shareholder Sells $381,064.00 in Stock $SHLD http://t.co/Hsm2saDHMo
ProTradersNews
28 Jan 15 18:46:02
$SHLD: Sears Holdings Corp Debt Trading 2.3% Higher (SHLD): http://t.co/tSgluUgMgU
Ticker Report
28 Jan 15 18:41:22
Sears Holdings Corp Debt Trading 2.3% Higher $SHLD http://t.co/1ekdENGTK6
Michael Torres, PhD
28 Jan 15 18:25:03
I see $SHLD still working. Mentioned it a few days ago. Heading to fresh 52-wk lows.
Stockaholics
28 Jan 15 18:16:43
Our Penny Stock Picks On $IJJP $TUNG & $QLTS Gained 117% In 3 Days! New Pick Coming: http://t.co/c7bXDM1sfp $XRAY $FOSL $SHLD
Insider Filings
28 Jan 15 17:58:19
$SHLD: BERKOWITZ BRUCE R bought a net $206,625 in SEARS HOLDINGS CORP. http://t.co/XFOvI6odgp
Insider Alerts
28 Jan 15 17:57:07
$SHLD: New Insider Transaction on SHLD by 10%+ Owner BERKOWITZ BRUCE R: http://t.co/m0Ibp1ujhx http://t.co/wXq1SGxid2
InsiderReports
28 Jan 15 17:56:45
Bruce R. Berkowitz (10% Owner) buys $SHLD (SEARS HOLDINGS CORP) shares for 588,000$. http://t.co/rFbiY7YIcX
HotKeyTrading
28 Jan 15 17:30:03
Trending High On Social Media: $FOSL $RCPT $CYBR $MELI $AVGO $ABMD $NCMI $ROST $EOG $CY $ULTA $MSG $SHLD $WSM $RH $RHT $ATHL $ADSK $AAL
				
				
By  +Follow December 9, 2013 3:32PM
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