3 Ways To Overcome Failure With Long-Term Investing

3 Ways To Overcome Failure With Long-Term Investing
News from Seeking Alpha:

If I were only allowed two words to describe the most necessary ingredient of a successful investing strategy, it would be this: “Know yourself.” Thinking that you are one type of investor when, in fact, you are another, is one of the most dangerous things that you can do. If you falsely believe that you can tolerate the wild swings of the stock market, you are going to self-destruct when the stock market tumbles of 2008 and 2009 come around. Along these lines, it can be dangerous to style oneself as a long-term investor when nothing could be further from the truth.

Over the course of the past year, I have heard from investors who have decided to pay full value for shares of excellent companies like Colgate-Palmolive (CL) and Kimberly-Clark (KMB) with the belief that a holding period of fifteen to twenty years will deliver stellar returns. This can be a sound strategy, provided that you actually follow through and hold for the long term. If you buy the stock of a company without any margin of safety built into the stock price and decide to sell in a couple years when interest rates rise, the economy recovers, or growth stocks soar, then you could possibl…………… continues on Seeking Alpha

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Our Apple Recommendation From July 1st Is Up By 15% So Far With Much Less …
News from Seeking Alpha:

By Timour Chayipov and Mark Bern, CPA CFA

In our original article titled, “A Chance to Make 50% on Apple With Little Downside Risk,” we explained a strategy called an artificial buy/write strategy. On June 29th (the last day of market activity prior to publication of the article), Apple (AAPL) stock closed at $ 584.00. The stock has risen by 14 percent since that time to close at $ 663.22 as of the close on Friday, August 24, 2012. Thus far our strategy is up a nearly identical 15 percent, even though we only used $ 20,000.

We are writing this article to help substantiate the viability of this strategy versus buying the stock. One thing that makes this strategy better, at least in our opinion, is that stocks like AAPL become more affordable. But the biggest reason is the difference in the risk versus owning the stock. If one had bought AAPL at $ 584 at the end of June that investor could have suffered losses had the stock dropped below that level at any point. They still could. But, with our artificial buy/write strategy, the investor would not risk losing money until the stock price dropped below $ 400. That is because the invest…………… continues on Seeking Alpha

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