Back to basics: investing

A couple of days ago, we had a conversation with a lovely woman we had just met. Immediately compatible, we covered many topics before we settled on how single women invest.

We shared our passion for investing on our own without advisors and lack of interest in mutual funds. IFO shared her frustration with women friends who left their investments in the hands of their advisors or brokers.

That reminded IFO’s new friend of her recent experience. “I thought maybe I should get an advisor,” she said. “But I just gave him a portion of my portfolio.”

She laughed. “I’m doing better than he is!”

Then, she recalled a step she had taken that she still regretted. She had seen a financial advisor on TV, you know one of those guys who reels off lists of stock to buy now, now, now! This one was recommending day trading and he especially liked Priceline.com (PCLN).

So she bought some stock at the beginning of the day, watched it go up, … then sold! “I was happy. I’d made $50 that day on that one trade.” IFO didn’t know what Priceline was doing, because she’s looks at a different universe of stocks: old-fashioned, quiet dividend payers, not high flyers.

Now, after looking into the company’s price action, we know why the woman was so sad. “It went to $400!” she exclaimed, hotly. That was a while ago. The company closed over $1,000 today!

That William Shatner is one effective salesman, isn’t he?

Investment lesson: you can’t win ’em all!

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About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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