The Profit Investigator

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Monday Musings - 8

As I look back on the past year, my first running the blog, I begin to reflect on what I have accomplished. I met all of my goals, in terms of the fund, and also had some outstanding followers that have encouraged me to continue writing and publishing. This does not go without notice believe me. But there is something that I must mention (and the reason that I am writing today) and that is how much more I have learned about my personal investing.

They say that if you really want to learn something then try teaching it and I have found that to be absolutely true. This past year and the however many posts that I have published, along with the countless social media interactions has led me to a whole knew understanding about my own investing.

Here are 5 things that I have learned along the way:

  1. If you have researched a stock, still believe its what to invest in, then buy it.
    Too many times in the past year I have researched, researched, and researched some more a company, realized it looks great, then not purchase it. Why? Some of these companies were riskier than I would have liked but isn't that why I did the research?
  2. Piggybacking on the last point, I am more conservative than I thought.
    There isn't anything wrong with this, but if I am trying to continue to play for that proverbial cigar butt then I have to be willing to lose out every now and then. I honestly follow the "Never lose money" rule, but I never would have thought that my conservative tendencies ran this deep.
  3. Dividends are king.
    The profit that I get from buying a stock when I think it is undervalued is great but the dividend income from the portfolio is truly the largest benefit. Yes my profits looked nice but in a down market (it will turn South at some point) these dividends must keep coming.
  4. DRIP isn't for me.
    Look, I hate the thought of paying Uncle Sam that 15% tax but right now with the market flying and the valuations so high, I can't bring myself to reinvest my dividends in companies that have a 30 P/E. I would rather take the 15% mark and invest in a company that is undervalued/good value (See my ORI addition).
  5. I need to still read technical charts.
    I honestly stopped even looking at charts when I began investing over trading. That being said I could have saved my portfolio a whole lot of hurt with purchases like BGFV if I would have just read a chart. It was pretty clear that when I purchased it there were still traders out there that were going to bring it down further. Instead of looking at a chart I purchased and am still under water.

I know this wasn't the most insightful post but it is what was on my mind, and isn't that what the Monday Musings posts are for? Anyways, let me know below what you learned this year about your own investing!