Buffetology: Profitable Investing

Buffetology: Profitable Investing

by Tony Pow

NOOK Book(eBook)

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Overview

This book is about how to profit using Buffett's preaching and how to avoid his strategies that are not applicable to the retail investors and today's market.

I also introduce Swing Trading and how to profit using this strategy. It copies the value investing concept from Buffett and is updated to today's market for retail investors.

Most of my profits in investing are made using the strategy of Swing Trading. Defined by me, Swing Trading is holding the bought stocks for about six months.

Contrary to Buffett's teaching, 'buy-and-hold' is dead since 2000. Before that, we have a nice 10% average return every year. Since then, we have two market crashes with an average loss of about 45%. We need to learn market timing (Chapter 15) to avoid huge losses. Today, companies have changed too much in a year, so we have to evaluate the market, the sector and the companies more often – I call it 'buy-and-evaluate'.

At the end of the holding period, evaluate the stocks again to determine whether you want to sell it or keep it longer. Last year, most of the stocks are kept for about a year, so they are qualified for the better tax treatment as long-term capital gains in my taxable account.

These stocks should be fundamentally sound (i.e. value stocks). Hence they need at least six months for the market to realize their values. Select the holding period that fits your objective.

After six months, the fundamentals of the company, the sector that the company belongs to and/or the market may change. Hence, we need to evaluate and decide the 'buy/hold' decision. Sometimes, you may want to raise cash to buy another stock that has more appreciation potential than a stock you own. Churning the portfolio improves the quality of your portfolio.

Last Update: 09/2015 Size: 95 pages (6*9)

Product Details

BN ID: 2940150894341
Publisher: Tony Pow
Publication date: 09/21/2015
Sold by: Barnes & Noble
Format: NOOK Book
File size: 355 KB

About the Author

I graduated from Cal. State University at San Jose in Industrial Engineering and University of Mass. in Amherst with a MS in Industrial Engineering. My last job was in IT. I have been an investor for over 30 years.

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