The Investing Diaries - Jan 25, 2021

As we all sit and watch the craziness in the market that continues to ensue it really makes one wonder about the investing strategy that needs to be put in place. Short squeezes are running rampant and it seems that everywhere you turn you see someone on a social media platform touting stocks that are “Ready to run”. This of course is not anything new, this has been being done for decades, but now just is done on a quicker basis and can spread like wildfire over social media.

What I want to talk about today is what I believe some people are missing:

The info on a lot of these running stocks, could have been found awhile ago if you read what the professionals are putting out.

One of the most popular now is Michael Burry's bet on Gamestop (GME). Burry had been long this stock for some time now, talking about its value and if you read his 13F you would have seen continual adds at around a $5 per share average (I believe). I'm not saying Burry was expecting GME to run like this, or am I saying follow people blindly. What I am saying is if you diligently read 13F’s you can get interesting ideas you can investigate.

Another great place to read is the letters to investors that are out out by various funds. Most are somewhat generic and non-informative on a specific stock basis, but what is important to know is how the big boys are readying themselves to invest or the patterns they are about to take. If you see a pattern of funds speaking of cyclicals, it may pay to look at a few. If they are speaking of market risk and heading to value, maybe research a few of those and the concerns that they are seeing.

My point is that as an amateur investor, the biggest thing you can do to learn and weaponize your portfolio is to READ! You don't find long term ten baggers on Twitter (most times) but in reading and researching and truly understanding the ins and outs of the companies behind these stocks.

Until next time, happy investing!