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

By  +Follow December 9, 2013 3:32PM
Tickers Mentioned:

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
31 Aug 15 10:48:34
$SHLD has dropped to p3 of CoBF forum! Nobody cares anymore. http://t.co/ENF9VuPxkn
31 Aug 15 10:32:02
$SHLD $M: J. C. Penney Company, Inc. (NYSE:JCP) Soars on Ratings Upgarde …: http://t.co/XPJSePU02m
31 Aug 15 10:31:02
$JCP $SHLD $M: JC Penney Company, Inc. (NYSE:JCP) Soars on Ratings Upgarde …: http://t.co/R9z0PRra02
Inclusive Michigan
31 Aug 15 09:24:27
Accruing In August’s Down Market via @AccrueInc https://t.co/6eune3lVyT $SVU $TNK $SHLD $GBPCHF http://t.co/pgS0hVQXRi
James Felton Keith
31 Aug 15 09:24:18
Accruing In August’s Down Market via @AccrueInc https://t.co/vfQ9pEeWiF $SVU $TNK $SHLD $GBPCHF
31 Aug 15 08:47:34
$jcp $shld u name it $ng $ssri $vale $sify
31 Aug 15 08:46:03
My Friend Made $4 Million Trading Like this! http://t.co/9Vnnw3s1D8 .. $XRAY $FOSL $SHLD
31 Aug 15 06:55:35
$shld still goin btw from under 20
Capital Market Labs
31 Aug 15 05:27:46
$SHLD Worst Fundamental Rating http://t.co/M9Tg9ssbPu http://t.co/1xQx0mL7mZ
31 Aug 15 05:21:50
@IHPosts2 $SHLD | Sears Holdings Corporation is up 24% since we reported $8,516,087 of insider buying on 08/24/2015.
31 Aug 15 05:13:01
$SHLD - Current Report Filing (8-k) http://t.co/6m5It89PcH
31 Aug 15 05:05:02
$SHLD: New SEC Filing for SHLD: Form 8-K (No. 0000898822-15-000222): http://t.co/nTV7EuY38N
Stock Market Picks
31 Aug 15 05:05:00
$ASML $SHLD $FNFG $PAYX $HOLX $JBHT Up to 900% #trading long positions from #NASDAQ, Ira account compatible http://t.co/1mj6DSmvnz $QQQ
Sec Filings
31 Aug 15 05:04:18
$SHLD: SEARS HOLDINGS CORP filed a form 8-K. http://t.co/04opuqrH5s
Latest SEC Filings
31 Aug 15 05:04:06
NEW SEC Filing for $SHLD filed a moment ago: http://t.co/wfC9qx4Nea http://t.co/CGbY3Eu1xZ
MyAllies Trading
31 Aug 15 03:09:17
$SHLD Sears Holdings Announces Final Tender Results Of Cash Tender Offer For 6 5/8% Senior Secured Notes Due 2... http://t.co/utwXA4dBAm
31 Aug 15 03:09:03
$SHLD: Sears Announces Final Tender Results Of Cash Tender Offer for 6 5 …: http://t.co/4AEIpnXdRW
31 Aug 15 03:02:02
$SHLD - Sears Holdings Announces Final Tender Results Of Cash Tender Offer For 6 5/8% Senior Secured Notes Due http://t.co/143kyIczI8
31 Aug 15 02:49:55
XOM PIMCO 20+ Year Zero Coupon US Treasury Index Fund Ex-Div Date http://t.co/kKeIoHFr4m $XOM $SHLD $MRK $JNK #XOM #stock #tradeideas
31 Aug 15 02:49:23
leahanneta : HZNP Biotech iShares Yield http://t.co/yHAGKItoJc $HZNP $CURE $SHLD $VUSTX… http://t.co/DJyT40hvsO) http://t.co/C9NM0Gb9a0
Lucky Jimmy
31 Aug 15 02:49:08
XIV Materials Select Sector SPDR E.P.S. http://t.co/4xLualNr7y $XIV $MTUM $BAYRY $SHLD #XIV #stocks #invest
Investors Hangout
31 Aug 15 02:47:34
TW.L Direxion Daily Small Cap Bear 3x Shares 52Wk High http://t.co/9IyOdn6ffX $TW.L $SHLD $NUGT $FB #TW.L #tradeideas #invest
31 Aug 15 02:46:26
SHLD Sierra Resource Group, Inc. Current Price http://t.co/fXs7RVDcyw $SHLD $IBB $AVXL $TZA #SHLD #stocks #stock
Stock Forums
31 Aug 15 02:44:03
MYEC Direxion Daily Homebuilders & Supplies Bull 3X Shares E.P.S. http://t.co/Udb1Oxzb9j $MYEC $BMSN $GE $SHLD #MYEC #stockmarket…
31 Aug 15 02:42:34
HZNP Biotech iShares Yield http://t.co/DIwGgzOC1k $HZNP $CURE $SHLD $VUSTX #HZNP #stockmarket #tradeideas
Investors Hangout
31 Aug 15 02:37:35
ERA.V Direxion Daily Energy Bull 3x Shares Yield http://t.co/iROjQxF4e4 $ERA.V $SLV $TSLA $SHLD #ERA.V #stockmarket #pennystocks
31 Aug 15 02:34:16
CANN General Cannabis Corp. Yield http://t.co/BEOlVugDZG $CANN $MA $SHLD $DWTI #CANN #share #tradeideas
Investors Hangout
31 Aug 15 02:33:39
BIOCON.IN Biocon Ltd. Exchange http://t.co/B9y0snIU5M $BIOCON.IN $SHLD $FIX $MYEC #BIOCON.IN #pennystocks #stock
IH News Desk
31 Aug 15 02:31:35
AMMJ American Cannabis Company, Inc. Ask http://t.co/HecbqJDtQL $AMMJ $SHLD $DIS $LIBE #AMMJ #investing #finance
Capital Market Labs
31 Aug 15 00:45:54
Interactive Chart -> http://t.co/Z3rqgA1qwE $SHLD Free Cash Flow is Shrinking. http://t.co/jsLCXUuQKl
Capital Market Labs
31 Aug 15 00:23:55
Interactive Chart -> http://t.co/TrCKMdhiyS $SHLD Revenue is Fading. http://t.co/sCGIVTKDft
30 Aug 15 23:58:02
$SHLD Institutional ownership up 2.02% Q/Q, with 1,701,450 net purchase http://t.co/swNASF8kOJ http://t.co/ZBHHARugZK
30 Aug 15 23:16:17
Gains Over 2500% In one Trade.. Subscribe Here! http://t.co/n4FmW1UTLN .. $BOSC $INCY $SHLD
30 Aug 15 21:46:54
Gains Over 2500% In one Trade.. Subscribe Here! http://t.co/9Vnnw3s1D8 .. $XRAY $FOSL $SHLD
zooey m
30 Aug 15 19:01:02
StockWebTrading: $ASML $SHLD $FNFG $PAYX $HOLX $JBHT Up to 900% #trading long positions from #NASDAQ, Ira account … http://t.co/X3n8d6GPom
Stock Market Picks
30 Aug 15 18:59:38
$ASML $SHLD $FNFG $PAYX $HOLX $JBHT Up to 900% #trading long positions from #NASDAQ, Ira account compatible http://t.co/1mj6DSmvnz $QQQ
Tonia Shaw
30 Aug 15 06:22:41
$PBIO & $WRES are on my swing list this week. I'm looking to get back in $CCJ, $SHLD & $TZA long (accidentally sold them Thursday). GLTA
30 Aug 15 05:44:19
Analysts Anticipate Sears Holdings Corp to Announce $$3.29 EPS $SHLD http://t.co/pTSiiI1qQJ
30 Aug 15 05:43:03
$SHLD: Analysts Anticipate Sears Holdings Corp to Announce ($3.29) EPS …: http://t.co/b4WPODqvll
Paeng Kalbo
30 Aug 15 03:45:55
@ChrisMayerAgora Could you plz do a write-up of $SHLD in the 100x Club?
Reporting Standards
29 Aug 15 14:46:37
$SHLD SEARS HOLDINGS CORP filed a new #XBRL report to the #SEC. http://t.co/X9286uo1bF
29 Aug 15 14:11:38
SHLD +1.37% Stock Charts $SHLD Sears Holdings Corp. (NASDAQ) Last Updated: 08/29/2015 16:11:43 SHLD Stock Char http://t.co/X278ALwMjt
Media Sentiment
29 Aug 15 12:24:50
$SHLD received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 28
TV_Trading Ideas
29 Aug 15 12:24:22
Very strong last week.....like al\u2026 $SHLD http://t.co/jFF0zSKaL4
Greg Harmon, CMT
29 Aug 15 12:24:22
$SHLD chart: Very strong last week.....like all the coal stocks,. http://t.co/gStJkSQRul
Clark Joseph Kent
29 Aug 15 08:52:15
Insider Buying Surges During Sell-Off: SolarCity, Sears $S $CMPR $LVLT $SHLD $SCTY $RDUS $LJPC $MTZ $MPLX $SUNE $SYMC http://t.co/koC4zow4wY
29 Aug 15 03:24:02
$SHLD: Sears Holdings Corp Bonds Trading 3.3% Higher (SHLD): http://t.co/t8k35QPqpu
28 Aug 15 23:27:02
$SHLD Institutional ownership up 2.02% Q/Q, with 1,701,450 net purchase http://t.co/swNASF8kOJ http://t.co/qEEY5p7FNA
Stock Rocket
28 Aug 15 19:38:48
Our Penny Stock Alerts Gained 550% In Less Than 6 Weeks! We Have A HUGE New Pick In The Works: http://t.co/wNx8NkJOZ4 $XRAY $FOSL $SHLD
Stock Dawgzz
28 Aug 15 18:55:38
Our Platinum Members Saw Stock Picks Gin Over 550% In 5 Weeks! See Our Exclusive New Pick: http://t.co/V9CRygFGCi $XRAY $FOSL $SHLD
By  +Follow December 9, 2013 3:32PM



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