Better Investing

Want a stock tip?  It's are real good one.  Here is it.  Don't listen to me.  That's because I invented the investment strategy called "Buy high, sell low".  Not only did I invent it, I perfected it with several technology stocks that went from all time highs in 1999 to near nothing during the tech bubble of the early 2000's.  Some of these stocks were tips I received from other "buy high sell low" traders as can't miss investments.  "You make 200%, 300% or more" I was told.

More recently I have changed to a different investment strategy.  I have been buying stock from companies that I like.  It's a lot easier.  There is no need to research company financials because the strategy is based on the fact that if you (an average consumer) like their products, others will too and the stock will increase in value.  It makes sense, but how does it work?  I have a couple of examples.

For instance, on December 15th I bought Netflix simply because I like the service.  The concept seems to be how we will be entertained in the future.  At the time I did not realize that Netflix had been growing exponentially for nearly a year and was thought to have completed its run.  Two days after buying the stock, several investment firms recommended selling the stock because they thought it had risen to an overvalued position.  Almost immediately, the stock price dropped 10%.  What a doofus I am.  But I did not sell, becasue I am a doofus.  But wait! Within the last 2 weeks, Netflix announced stellar earnings.  Since then the stock has shot up.  I have now made 14% on that investment.  Not bad. 

On September 9th, I bought Apple stock because I like Apple products (sorry NILK).  That stock purchase has increased 39%.  Maybe there is something to this "invest in what you like" strategy.  It certainly has a better track record than buy high, sell low.