Madrid, Spain. I made it. Good trip. Delta is great, once again. Sort of propitious I’m in Europe, too.
I write this column because I love hearing my readers’ ideas. After all, we’re all in this together. Occasionally, readers write I’m an idiot and they’re much smarter, and much richer. I ask why. I usually don’t get a response. But I did yesterday.
Someone called Goose said the usual stuff. I asked (on the Comments section below) “Who missed the rally? (I’ve made money since March, 2009 also.) Got any numbers to show how you’ve grown wealthy? Maybe we could all learn something?” I got a response:
Don’t need luck, I have brains and common sense. Like Buffett says, that’s all it takes. And a willingness to read a company report. I’m not a Dem or Republican, don’t get caught up in politics, it’s for losers like Laughnow who appears to have missed the rally.
To Harry’s question: In spring of 2009 I bought a lot of GOOG when it was trading in the low to mid 300s. It’s now around 700. I also poured money into Fidelity Growth mutual fund in March 2009 when it was trading at $41. It’s now selling at $98 per share. I didn’t do as well on the S&P 500, buying that around 77; it’s now 133. I also purchased Bank of America when it was much, much lower than today and nobody wanted it and it has grown exponentially, etc., etc.
As Buffett says: “Be greedy when others are fearful.” I don’t believe in shorting, puts or options, only buying good strong firms and funds when – and only when – they’re on sale.
Right now unloved European stocks look awfully tempting.
I think Goose is right. And it’s great I’m in Europe and especially in Spain, the awfulest of them all.
So, my project in the next 12 days will be to check out good, strong European firms and funds that are on sale.
I suggest everyone else do the same. When you find something, drop a comment on the bottom. We’ll see what we can collectively find.
I’ll be back tomorrow with my findings.
Con Edison has fallen 9% from its 52-week high. That’s bad. Under my rules I should sell it.
But the company is rock solid in all respects. The only thing “wrong” is that a slow-growing regulated utility. It delivers steam, gas, but mostly electricity to New York City. That’s the bulk of its business. But New York is vibrant, has the most new technology jobs after San Francisco. Population is growing and real estate buying and renting prices are rising. iCon Edison is yielding 4.01%. And it’s the only utility company in the S&P 500 that’s delivered 30 years of consecutive increases in its dividend.
I just listened to Robert Hoglund’s most recent webcast. He’s Con Edison’s CFO. What he said was very impressive. Please listen and watch the slides. Click here.
I don’t know why the stock has fallen. I keep looking for a reason. If I don’t find any, I may buy more. It looks like a solid company on sale. Your thoughts?
This evening is Rosh Hashanah, Jewish New Year. There’s an old saying Sell Rosh Hashanah. Buy Yom Kippur, which is in ten days.
On the morning of Rosh Hashanah as the congregation was filing into the sanctuary, Rabbi Feldman noticed little Jacob standing in the foyer of the synagogue staring up at a large plaque. It was covered with names with small American flags mounted on either side of it. The six-year old had been staring at the plaque for some time, so the rabbi walked up, stood beside the little boy, and said quietly, ‘Boker tov, Jacob. ‘
‘Boker tov, Rabbi Feldman,’ he replied, still focused on the plaque. `Rabbi Feldman, what is this?’ he said, pointing to the plaque.
The good Rabbi tenderly put his arm around Max’s shoulder and said, ‘ Well son, it’s a memorial to all the young men and women who died in the service. ‘
Soberly, they just stood together, staring at the large plaque.
Finally, little Jacob, in a voice barely audible and trembling with fear asked:
‘Which service, Rosh Hashanah or Yom Kippur?’
Harry Newton who, despite being in Madrid, will be back again tomorrow. I’m online with Verizon’s International JetPack. It works like a charm.
I take back my idiot comment since you agree with me.
Because Europe is hit and miss and I – and most U.S. investors – don't understand it nearly as well as this country, so far I'm sticking mainly to mutual funds. Fidelity Europe, the Vanguard ETF, etc. I've also sunk money into Royal Dutch Shell, although I'm not as confident in it as I am of Europe in general.
Are you going down to Marbella? If so, I'll tell you where Michelle took her 150 closest friends to party. I couldn't afford to even go in for lunch, but maybe you'll want to say, “I've been to Michelle's favorite spot in Spain.”
Here in the USA, Rosh Hashanah starts on the evening of Sept. 16.
Harry, if you ask the Spanish people what they think of the Euro and the Spanish/European economy you'll find that they understand it and believe the system/politicians are corrupt and most importantly that their's nothing they can do about it. They know the end is coming. So their overriding philosophy is one of “party like it's 1999″……see if I'm wrong……but you must tread lightly. Good luck.
I know it's a different time zone in Spain, but not THAT different! Rosh Hashana actually begins on Sunday evening and ends Tuesday evening. L'shana tova!