Sunday, January 25, 2009

White light, strange city, mad music all around

6 finance / personal investing / stock books since the time 'I have money,' I've found most blogs on how to become rich are terrible.

My approach, Peter Lynch meets Warren Buffet with a heavy hand of geopolitics. Find value stocks in things that you know, wherever they may be. I will stay away from mutual funds, and the financial service sector at large (except for my 6.99 per trade e-trade account.)

First draft of Framework --

Energy -- Till we're green, we need oil, Obama says no more from Middle East, Russia, or Venezuela in ten years, that leaves Canada and Brazil, Petro Brazil is choice, for at least 5 years.

Until a true leader emerges in the green energy crusade, Its hard to find a good performer.

Tech -- Next time (and hopefully last) time we test the bottom of the market, I'm going to buy Google, I use religiously, they're ahead with the cloud, etc. (buy and forget)

Retail -- Roll with Amazon, they svcs run twitter, and will corner the small B2B market in cloud services, not to mention a steady payroll for being the 'wal mart' of the web, but cooler and more informative. (buy and forget)

Defense -- Paying close attention to how, who and what is going to guard our ports.

Infrastructure -- Primarily in China, and those who partner with Chinese companies.

More to come....still thinking

Ten years from now, I have to have some 3 to 4 baggers (where 1 dollar turns to 4), etc, etc -- While at the top, I'll slowly funnel some money to commodities (probably in Australia). When I'm 50, I may roll more with bonds, but I'm still not sure on how the flow will work, but it'll be either one of the two below strategies, depending on life circumstances.

1 -- Invest in common stock till the bitter end, and have the 'the shit hits the fan plan' when and if it happens.

2 -- Stocks for the big wins, commodities for a decent gain, skimmed from the top of stock wins, bonds, from both, as I get older.

Call me crazy, but I don't see the need for mutual funds after my -37 percent return for 2008. I think I can do better than that with my eyes closed 15 minutes a week. As a personal investor, you have much more leverage than institutional money.

The journey begins soon, I plan on being couragous, moderately risky, and never putting the money on just red (guessing, hitting and hoping) --

When the cash its the market, it'll be the most thought out stuff I've ever done, and it'll have a plan I stick with, i.e., thresholds, etc, etc.

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