One of these days I'll learn to buy stocks when they're low and sell them when they're high, instead of the other way around. You could make more money in the market by doing the opposite of what I do.
What do I do? I told you. Buy high, sell low. It works for me. It’s the only true way to a small fortune in stocks. Start with a large fortune in stocks first.
Google is tasting Wall Streets wrath these days. The price to earnings ratio of GOOG is worse than AAPL, as if that matters when selling an overpriced stock so you’ll be able to eat and pay rent.
I figured Apple Computer’s stock to be too high at $40 a share. It’s down a bit, but still in the mid $70s. Microsoft’s MSFT? Hasn’t budged in five years. Does that make it a bargain?
Stock market proponents argue that stocks are an excellent investment over the long haul. Unfortunately, the dot com bubble taught too many investors that you could make money today, and tomorrow, not next century.
We’re into next century already and not much has changed in five years. Except I’m not as rich as I once was. I’m shrinking, too.
Seriously. I’m shrinking. I figure I’ve lost nearly an inch in height over the past decade, and short of medieval stretching techniques can’t figure a way around it. It’s part of the circle of life.
What goes up, must come down. I’m coming down. How much stock I have won’t help.
Buy high, sell low.
Yes, I am the consummate expert at that. Even more impressive, I mastered this art in my very first foray into the stock market!
I saved most of my money in a bank at 1.5% through the 90’s while pursuing my career. Then in December 1999, I spoke with a friend who told me he was making 50%, 75%, 100% gains in his mutual fund and stock portfolio! That’s it, I resolved...no more 1.5% gains for me! I’m gonna make me some money!
So I poured loads of my savings into tech stocks in March 2000. But I did my due diligence and research. I only bought stocks that the brilliant and wise analysts rated as “Strong Buy.” The stocks that were the talk of the town in all those finance magazines. You know...companies like Ariba, and Broadvision, and Commerce One, and Kana.
And my resolution came to fruition...no more 1.5% gains for me! Rather, I was piling up 95% to 100% losses left and right, I was such a good SELL LOW, VERY LOW investor.