Recap of 20 years

Chuck Krug

Chuck Krug

Coming up on 20 years since I placed my first order.
Been on both sides of the phone.
Wanted to recap what I think works for the average investor.
Talking investing in general.

Buying and holding a handfull of defensive stocks. Only adding, no selling. When selling, the average investor tends to sell too low and buy too high or never gets back in.

Investing in a tech start up fund run by an experienced and capable manager. There are a few of those out there. Can be hard to find, same as a good lawyer or doctor can be hard to find.

Hedge funds and mutual funds: warning! Very few good ones out there. Do a lot of due-diligence.

Buying a house to rent out. A lot of people got scared and prefer not to own. Pick middle class neighborhoods make sure the rent covers all costs (mortgage/ maintenance/etc).

Secondary offerings. Must be in good standing with banks to get the good ones.

Discuss.
 
Imo, I think young people, even if they haven't any money to invest at the time should build a watch list. Start out picking companies they know and work from there.

Using a watch list then they can follow the news, the Dow and watch how stock prices react. Maybe checking prices once a week or as often as they are interested, maybe when there is news developing, etc.

Get a feel for your list of stocks and the general price ranges they trade in and in relation to the overall market.

Then wait.

Wait for the Shit to hit the fan. I tell my kids the market is going to go in the crapper at least once in your life time and when it does. Buy. And if your wrong and it goes lower, buy some more.

Then wait.
 
Quote from nutmeg:

Imo, I think young people, even if they haven't any money to invest at the time should build a watch list. Start out picking companies they know and work from there.

Using a watch list then they can follow the news, the Dow and watch how stock prices react. Maybe checking prices once a week or as often as they are interested, maybe when there is news developing, etc.

Get a feel for your list of stocks and the general price ranges they trade in and in relation to the overall market.

Then wait.

Wait for the Shit to hit the fan. I tell my kids the market is going to go in the crapper at least once in your life time and when it does. Buy. And if your wrong and it goes lower, buy some more.

Then wait.
More...

you know for all the crap that is put out.. that is the simplest and most successful strategy out!.. save your money... only buy in market crashes.. hold for years.. this strategy will kill any other..
 
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