Skip to content

The biggest investment lesson. Hot is hot. Until one day it no longer is. Substituting enthusiasm for intelligence.

Here are the last 12 months of some famous hot stocks.

It’s hard to recognize the peak. Going parabolic has something to do with it. But that’s when you want OUT.

When I left Australia back in 1967, my boss said “I’d love the Americans because they were just like me. They substituted enthusiasm for intelligence.”

He meant it as a complement.

Do it. Don’t think too much. That’s how we got to the moon. And why others didn’t.

The easiest part of stock picking is seeing the enthusiasms — the stocks above. The hardest part is selling them when the enthusiasm has run out.

I’ve been wrong in not embracing hot — bitcoin, dogecoin, cannabis, biotech, etc. I should learn to play them, watch them rise, then get out. The rises lull you into believing the rises will keep on rising. I try to buy mildly hot that will stay mildly hot — FAANNG, Facebook, Apple, Amazon, Nvidia, Netflix and Google. But it hasn’t been the best “strategy” in the last year.  I’m learning.

Yesterday I wrote the decline was a great buying opportunity. I bought more of TSM, NVDA, LOW, CLF, LOGI, HD, MGA, LUV ,and  TSCO, and bought new WY. They’re all up, except for HD and WY. NVDA is up big time. That proves I can do one thing right… Oops, two things. I won the second set of tennis thing morning. A fluke.

Today is May 5, which is Cinco De Mayo

The Titanic and mayonnaise

What a lot of people don’t know about the Titanic was that it was carrying a large shipment of mayonnaise to Mexico. In fact, the Mexican people were overjoyed to be receiving this fine delicacy.

Sadly, as we all know, the Titanic tragically sank, sending its many tons of mayonnaise to the bottom of the ocean. The Mexican people were saddened by this event, and dedicated an annual event to the remembrance of the mayonnaise.

We call it Cinco de Mayo.


This is Frisbee, the Portland, OR family’s new dog

Her eyes seem like a perfect comment on my latest (and greatest) investment “strategy.”

We’re up today — about a third of what we lost yesterday.

Here’s the latest reason I don’t want to mess with Chinese stocks? Read today’s “Battle Royale Fueled by Beijing,” also titled “‘Dog Biting Dog’: China’s Online Fight Could Further Empower Beijing.” Click here.

See you tomorrow. — Harry Newton