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Some sound investment advice for the hesitent buyer/seller

HeXploiT

Diamond Member
Jun 11, 2004
4,358
0
71
This is for a select group of people who meet the following criteria that will become evident.
If you follow this investment advice you absolutely cannot lose.

First for the individual who is uncertain as to whether or not to sell current positions.
There is no such thing as a hold. There is only buy or sell.
If you are not convinced that an issue is worth buying at the current price then it is a sell. If you wouldn't buy it at the current price and under current market conditions then why on earth would you hold it?
Anything less is a roll of the die. If you want to take that sort of a risk then go to Vegas and at least have fun doing it.

Second...for those who want to invest and have a guaranteed return on their investment.
Pay off your high interest debt(credit cards etc).

These things seem so simple yet again and again I see Americans bypassing these guidelines for "winning" investment strategies.
 

Dissipate

Diamond Member
Jan 17, 2004
6,815
0
0
Originally posted by: Perry404
If you follow this investment advice you absolutely cannot lose.
Were you that guy in the cheap suit on the infomercial last night?

 

shira

Diamond Member
Jan 12, 2005
9,567
5
81
Originally posted by: Perry404
This is for a select group of people who meet the following criteria that will become evident.
If you follow this investment advice you absolutely cannot lose.

First for the individual who is uncertain as to whether or not to sell current positions.
There is no such thing as a hold. There is only buy or sell.
If you are not convinced that an issue is worth buying at the current price then it is a sell. If you wouldn't buy it at the current price and under current market conditions then why on earth would you hold it?
Anything less is a roll of the die. If you want to take that sort of a risk then go to Vegas and at least have fun doing it.

Second...for those who want to invest and have a guaranteed return on their investment.
Pay off your high interest debt(credit cards etc).

These things seem so simple yet again and again I see Americans bypassing these guidelines for "winning" investment strategies.
Nonsense. Selling a position means locking in capital gains, subjecting yourself to tax NOW. Not selling means delaying the tax: Maybe tax rates will go down. Maybe your gains will go from short-term to long term (at a much lower tax rate). Maybe you don't have too much longer to live, and you want your heirs to inherit your stock with their basis = the current value, with no tax owed.

Also, most people - even experts - know very, very little. They don't know if their current position is good or bad. Your strategy would force them to make a decision. Why should they guess? Maybe they want to wait until things become clearer.
 

HeXploiT

Diamond Member
Jun 11, 2004
4,358
0
71
Originally posted by: Dissipate
Originally posted by: Perry404
If you follow this investment advice you absolutely cannot lose.
Were you that guy in the cheap suit on the infomercial last night?
No. I was the guy wearing the Kiton thanks to the price of aU.:D
 

HeXploiT

Diamond Member
Jun 11, 2004
4,358
0
71
Originally posted by: shira
Originally posted by: Perry404
This is for a select group of people who meet the following criteria that will become evident.
If you follow this investment advice you absolutely cannot lose.

First for the individual who is uncertain as to whether or not to sell current positions.
There is no such thing as a hold. There is only buy or sell.
If you are not convinced that an issue is worth buying at the current price then it is a sell. If you wouldn't buy it at the current price and under current market conditions then why on earth would you hold it?
Anything less is a roll of the die. If you want to take that sort of a risk then go to Vegas and at least have fun doing it.

Second...for those who want to invest and have a guaranteed return on their investment.
Pay off your high interest debt(credit cards etc).

These things seem so simple yet again and again I see Americans bypassing these guidelines for "winning" investment strategies.
Nonsense. Selling a position means locking in capital gains, subjecting yourself to tax NOW. Not selling means delaying the tax: Maybe tax rates will go down. Maybe your gains will go from short-term to long term (at a much lower tax rate). Maybe you don't have too much longer to live, and you want your heirs to inherit your stock with their basis = the current value, with no tax owed.

Also, most people - even experts - know very, very little. They don't know if their current position is good or bad. Your strategy would force them to make a decision. Why should they guess? Maybe they want to wait until things become clearer.
So taxes make it nonsense? Now that's nonsense.
Rather taxes are part of the equation.

By the same logic you could say paying off debt is bad.
If you have to choose between eating or paying off your debt I think most people will choose eating. Obviously there are always extenuating circumstances to bring into the equation. Once again black & white thinking = fail.
 

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