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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for shld
Capital Market Labs
29 Mar 15 04:42:15
$TGT vs. $SHLD vs. $KSS vs. $M Compared Across 9 Critical Measures Chart: http://t.co/m5WCjGZFlL
nj.com reader
28 Mar 15 17:42:28
It is because of customer love & loyalty that Eddie has yet to kill off $SHLD, but the end is near. Such a waste - http://t.co/FoYfSXmOUB.
10X Trading
28 Mar 15 17:17:07
Day Trading Watch List for March 30th http://t.co/iQREaMS86A $SHLD $BCLI $FIVE $LL $WTW $JMEI $GES $SNDK $SONC $RADA $W $YOD
Venky Srinivasan
28 Mar 15 15:58:15
$SHLD BO > above Friday's highs or ideally 42.81. RSI > 70. MACD/STO bullish. http://t.co/SG7N3JHP2o
Capital Market Labs
28 Mar 15 15:37:55
$TGT vs. $DG vs. $SHLD Compared Across 9 Critical Measures Chart: http://t.co/Vh9O44zw7H
Great Stockpix
28 Mar 15 13:30:29
Watch list video for March 30th: $SHLD $BCLI $FIVE $LL $WTW $JMEI http://t.co/VnitkbxatJ or YouTube version: http://t.co/G0qHcUtmp5
StockenheimerSchmidt
28 Mar 15 12:24:38
$RCGP tripled in value within 2 days as of yesterdays high! high! Big News: http://t.co/RWkbXZLnwm $XRAY $FOSL $SHLD
Dan
28 Mar 15 11:45:01
RT @stt2318: $SHLD 15 min setup http://t.co/61ig6haSZR
Stock Rocket
28 Mar 15 11:38:12
Our Penny Stock Newsletter Picks Gained Over 1485%! Huge Update: http://t.co/cDuleLngkJ $XRAY $FOSL $SHLD
stt2318
28 Mar 15 11:29:43
$SHLD 15 min setup http://t.co/61ig6haSZR
Stock Dawgzz
28 Mar 15 10:41:01
Our Penny Stock Alerts Have Gained Over 1600% In THe Past 4 Months! Subscribe Today: http://t.co/nsMnuzEuhP $XRAY $FOSL $SHLD
Adam Sharkey
28 Mar 15 10:39:09
@JBTD91 you never know they might buy $WTSLQ and $RSHCQ then merge with $SHLD
Penny Stock Secret
28 Mar 15 09:36:31
This Service Made 20,000% Gains In the Last Month! Subscribe Here http://t.co/SVqoMkrw2z .. $XRAY $FOSL $SHLD
Penny Stockington
28 Mar 15 09:06:14
Our Penny Stock Pick On $RCGP Gained As Much As 236% In 2 Days! Get Our Next Pick Early: http://t.co/22aEoRrPYm $XRAY $FOSL $SHLD
Stockaholics
28 Mar 15 08:54:17
Our Stock Tips Have Gained Over 230% Within 2 Days! Huge News: http://t.co/FW1zCkmOE6 $XRAY $FOSL $SHLD
Pzaa...Guy
28 Mar 15 08:36:09
$SHLD - What Sam Walton Would Say About Walmart's New Minimum Wage http://t.co/moqiEte1it
NASDAQ
28 Mar 15 08:36:06
$SHLD - What Sam Walton Would Say About Walmart's New Minimum Wage http://t.co/37mX2DoBLg
Stockaholics
28 Mar 15 06:26:19
Our Stock Tips Have Gained Over 230% In Less Than 24 Hours! Huge News: http://t.co/FW1zCkmOE6 $XRAY $FOSL $SHLD
Breaking News
28 Mar 15 06:10:02
$JCP $SHLD: Here's Why Evercore Thinks JC Penney Company Inc (JCP) Is A Sell: http://t.co/ezf9f8I3MB
Ophir Gottlieb
28 Mar 15 05:34:50
$SHLD vs. $JCP vs. $JWN vs. $KSS Compared Across 9 Critical Measures Chart: http://t.co/PSzbzmuQN6
Ophir Gottlieb
28 Mar 15 04:37:56
$SHLD Assets are Shrinking. Chart: http://t.co/sPwmuplQr4
Stock Dawgzz
28 Mar 15 02:06:33
Our Penny Stock Alerts Have Gained Over 1600% In THe Past 4 Months! Subscribe Today: http://t.co/nsMnuzW59n $XRAY $FOSL $SHLD
Penny Stockington
28 Mar 15 00:35:56
Our Penny Stock Pick On $RCGP Gained As Much As 236% In 2 Days! Get Our Next Pick Early: http://t.co/22aEoRaezM $XRAY $FOSL $SHLD
Capital Market Labs
27 Mar 15 21:22:13
$SHLD vs. $JWN vs. $JCP vs. $M Compared Across 9 Critical Measures Chart: http://t.co/6g8184E8h5
Ophir Gottlieb
27 Mar 15 19:34:50
$SHLD vs. $KSS vs. $M vs. $JCP Compared Across 9 Critical Measures Chart: http://t.co/PFPRCfvpSU
#HelpYouGetGAINS
27 Mar 15 18:12:21
Sears Holdings: The End Game http://t.co/CYyPlzzwrB … $SHLD
David William
27 Mar 15 17:55:02
Sold 1/5 of my $FB position to raise cash at 83 , will see , might by $COSI or $SHLD with cash
Tom Minnich
27 Mar 15 16:27:17
@OphirGottlieb i thought the same this week on $SHLD. play the chart not the name.
Capital Market Labs
27 Mar 15 16:09:20
RT @OphirGottlieb: I don't like the company or the stock, but $SHLD may be on the verge of breaking out :-/ http://t.co/P1nynZuzrJ http:/…
Media Sentiment
27 Mar 15 16:08:00
$SHLD received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 334
Ophir Gottlieb
27 Mar 15 16:07:16
I don't like the company or the stock, but $SHLD may be on the verge of breaking out :-/ http://t.co/P1nynZuzrJ http://t.co/qyBMlIpGtN
Ophir Gottlieb
27 Mar 15 12:40:13
$SHLD Revenue is Shrinking. Chart: http://t.co/Tt3u9OWHrV
Stockaholics
27 Mar 15 11:11:04
Our Stock Tips Have Gained Over 230% In Less Than 24 Hours! Huge News: http://t.co/FW1zCkmOE6 $XRAY $FOSL $SHLD
Stock Rocket
27 Mar 15 10:45:58
Our Penny Stock Newsletter Picks Gained Over 1485%! Huge Update: http://t.co/cDuleLngkJ $XRAY $FOSL $SHLD
Jack Trader
27 Mar 15 10:36:26
$SHLD Sears Holdings Corporation (SHLD): Fairholme Case Study http://t.co/D9L4Yj20X2
Penny Stockington
27 Mar 15 10:20:26
Our Penny Stock Pick On $RCGP Has Gained Over 236% In 2 Days! Get Our Next Pick Eary: http://t.co/22aEoRrPYm $XRAY $FOSL $SHLD
Trending Articles SA
27 Mar 15 09:00:04
Sears Holdings: The End Game http://t.co/EUvkiK2b2W $SHLD
Daphne Unsted
27 Mar 15 08:54:21
RT @paulwoll: $SHLD technically holding up well. Longer holds up under resistance the more worthy of watching for a breakout. https://t.c…
Woll Street
27 Mar 15 08:51:53
$SHLD technically holding up well. Longer holds up under resistance the more worthy of watching for a breakout. https://t.co/ctlx7uFUvC
Breaking News
27 Mar 15 08:49:03
$SHLD $WMT: Sears Holdings: The End Game (SHLD): http://t.co/p4oAj1Kxri
Market Int Center
27 Mar 15 08:44:07
Sears $SHLD Trading Near $42.94 Resistance Level ( http://t.co/F8gyBiP041 )
Long & Short Ideas
27 Mar 15 08:41:59
Sears Holdings: The End Game http://t.co/AirbtH91sF $SHLD
Quantpost Service
27 Mar 15 08:41:59
$SHLD News: "Sears Holdings: The End Game $SHLD" http://t.co/ugnyrdFu9l Quote: https://t.co/3j8wNx5rnP
Seeking Alpha
27 Mar 15 08:41:59
Sears Holdings: The End Game http://t.co/yuSSnMi2wX $SHLD
Stockaholics
27 Mar 15 02:06:09
Our Winning Stock Tips Gained Over 680% In The Past 2 Months! Subscribe Today: http://t.co/lLjJU4COQW $XRAY $FOSL $SHLD
Stock Dawgzz
27 Mar 15 01:04:46
Our Penny Stock Picks Have Gained Over 1485% In The Past 4 Months! MASSIVE Update: http://t.co/Nr8lmTigQP $XRAY $FOSL $SHLD
StockenheimerSchmidt
27 Mar 15 00:54:59
Our Penny Stock Pick On $THCZ Is Up 321.54% In Less Than 6 Weeks! This is Huge: http://t.co/WroUGtaeZF $XRAY $FOSL $SHLD
Penny Stockington
27 Mar 15 00:54:41
Our Penny Stock Alerts Have Gained Over 1000% So Far This Year! Big News: http://t.co/Mq9GADvqO5 $XRAY $FOSL $SHLD
Gary
26 Mar 15 21:29:58
Great action on $SHLD today. Tanked in the AM, went red to green, then positive by another .65 percent. Swing long candidate.
Ophir Gottlieb
26 Mar 15 18:45:46
$SHLD Revenue is Fading. Chart: http://t.co/KIZaMuOK8C
				
				
By  +Follow December 9, 2013 3:32PM
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