Five years ago, in May 2007, I posted my first article on GuruFocus. It was called, ��hy Do We Sell Low and Buy High?��and it described some of the mistakes that we commit as investors.
We all know the depths that we went through since May 2007. For many people, fear was all they felt (and some unfortunately still do). Many investors committed the same mistakes (as well as others), and many people who have committed their hard-earned money without knowing the basics of investments have ended up frustrated, fearful and with unsatisfactory results.
I decided to use my first article and make it into a book. Hopefully the book will help to answer the question ��hy do we sell low and buy high?��and many other questions, as well as teach the reader about the basics of the stock market, its participants and provide checklists and insights that will enable the reader to build a framework to become a better investor.
I appreciate all the insights and wisdom that I have received reading many articles on GuruFocus and I am re-posting the article (which is now the first chapter of my book) as well as the second chapter. I hope you all enjoy.
Why do we sell low and buy high? Part 1
We��e often told that in order to be a successful investor we need to buy stock at a low price and sell it at a higher price. If we do that multiple times, we are destined to be rich. Why is it then that so many of us do the exact opposite?
10 Best Gold Stocks To Invest In 2015: Oracle Corporation(ORCL)
Oracle Corporation, an enterprise software company, develops, manufactures, markets, distributes, and services database and middleware software, applications software, and hardware systems worldwide. It licenses of database and middleware software, including database management software, application server software, service-oriented architecture and business process management software, data integration software, business intelligence software, identity and access management software, content management software, portals and user interaction software, development tools, and Java; and applications software comprising enterprise resource planning, customer relationship management, enterprise performance management, supply chain management, business intelligence applications, enterprise portfolio project management, Web commerce, and industry-specific applications software. The company also offers customers with rights to unspecified software product upgrades and maintenance releases; Internet access to technical content; and Internet and telephone access to technical support personnel. In addition, its hardware systems products consist of computer server and hardware-related software, including the Oracle Solaris Operating System; and storage products, such as tape, disk and networking solutions for open systems and mainframe server environments. Its hardware systems support solutions include software updates for the software components. Further, the company offers consulting solutions in business and IT strategy alignment, enterprise architecture planning and design, initial product implementation and integration, and ongoing product enhancements and upgrades; cloud services, including Oracle Cloud Services and Advanced Customer Services; and education solutions comprising instructor-led, media-based, and Internet-based training in the use of its software and hardware products. The company was founded in 1977 and is headquartered in Redwood Ci ty, California.
Advisors' Opinion:- [By Geoff Gannon]
When you are looking at that kind of business ��Berkshire Hathaway is certainly one, but CEC Entertainment (CEC), Birner Dental, Oracle (ORCL) etc. may also count ��you are imagining yourself as a shareholder and silent partner in a business that will continue to be controlled by the current management team ��or similar successors ��and in which they will decide what your dividends are each year, they will decide how much stock is issued or bought back, etc.
- [By Monica Gerson]
Analysts are expecting Oracle (NYSE: ORCL) to have earned $0.95 per share on revenue of $11.48 billion in the fourth quarter. Oracle shares gained 0.35% to $42.96 in the after-hours trading session.
- [By Garrett Cook]
Oracle (NYSE: ORCL) announced its plans to buy Micros Systems (NASDAQ: MCRS) in a $5.3 billion deal.
The offer price of $68 per share represents a 3.4% premium over Micros' closing price on Friday.
Top 10 Low Price Stocks To Invest In 2014: Sprott Physical Silver Trust (PSLV)
Sprott Physical Silver Trust (the Trust) is a closed-end mutual fund trust. The investment objective of the Trust is to seek to provide a secure, convenient and exchange-traded investment alternative for investors interested in holding physical silver bullion without the inconvenience that is typical of a direct investment in physical silver bullion. The Trust focuses to achieve its objective by investing in long-term holdings of unencumbered, fully allocated, physical silver bullion and does not speculate with regard to short-term changes in silver prices. The Trust invests and intends to continue to invest primarily in long-term holdings of unencumbered, fully allocated, physical silver bullion and does not speculate with regard to short-term changes in silver prices. Sprott Asset Management LP (the ��anager�� acts as the manager of the Trust. Advisors' Opinion:- [By Cameron Swinehart]
Going forward I will be looking to add investments on my watchlist and trim other positions. It will be interesting to see how an overweight commodity portfolio will perform relative to the rest of the market.
Cost Basis# SharesCurrent Price% of PortfolioCurrent ValueReturnMetal/Miners Sprott Physical Gold Trust (PHYS)$12.4985$11.043.75%$938.40-13.13%Sprott Physical Silver Trust (PSLV)$7.95125$8.744.37%$1,092.509.04%FreePort-McMoran (FCX)$31.6731$33.874.20%$1,049.976.50%Ishares MSCI Global Gold Miners ETF (RING)$13.0695$10.644.04%$1,010.80-22.74%Energy Statoil ASA(STO)$21.7940$22.683.63%$907.203.92%Vanguard Natural Resources LLC (VNR)$27.5636$27.874.01%$1,003.321.11%ConocoPhillips (COP)$63.6822.43$71.006.37%$1,592.5310.31%Agriculture CVR Partner LP (UAN)$26.3630.9$18.932.34%$584.94-39.25%Adecoagro$6.78125$7.443.72%$930.008.87%Archer-Daniels Midland (ADM)$34.8030$37.244.47%$1,117.206.55%Mixed Commodity Powershares DB Commodity Index (DBC)$26.3540$25.954.15%$1,038.00-1.54%Sprott Resource Corp$3.34400$2.714.34%$1,084.00-23.25% Total % of portfolio49.40% Cost Basis12,666.00 Current Value12,348.86 Return-2.50% Source: Investing For The Future Surge In Commodity PricesDisclosure: I am long ADM, FCX, UAN, AGRO, RING, VNR, SCPZF.PK, COP, DBC, PHYS, PSLV. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. (More...)
- [By Eric Parnell]
It also remains worthwhile to hedge stock allocations to protect against any major downside event along the way. This includes positions with low correlations such as the PIMCO Total Return ETF (BOND) or the PIMCO Global Advantage Inflation Linked Bond ETF (ILB). This also includes allocations that are likely to rally sharply in the event of a stock pullback but can also continue to rise along with the market such as long-term Treasuries (TLT) or Build America Bonds (BAB). And despite the recent thrashing they have endured, the precious metals complex including gold (GLD), silver (SLV), platinum (PPLT) and palladium (PALL) continue to provide attractive long-term portfolio diversification benefits. I remain long all of these metals via the Central GoldTrust (GTU), the Central Fund of America (CEF), the Sprott Physical Silver Trust (PSLV) and the Sprott Physical Platinum and Palladium Trust (SPPP).
Top 10 Low Price Stocks To Invest In 2014: Lincoln Educational Services Corporation(LINC)
Lincoln Educational Services Corporation provides post-secondary education services in the United States. The company offers degree and diploma programs for recent high school graduates and working adults in the areas of studies, such as health science, automotive technology, skilled trades, business and information technology, and hospitality services. As of December 31, 2011, it had 19,204 enrolled students. The company operates 46 schools in 17 states under Lincoln Technical Institute, Lincoln College of Technology, Lincoln College of New England, Nashville Auto-Diesel College, and Euphoria Institute of Beauty Arts and Sciences brand names, as well as offers online programs. Lincoln Educational Services Corporation was founded in 1946 and is headquartered in West Orange, New Jersey.
Advisors' Opinion:- [By Jon C. Ogg]
Teradyne will replace Scholastic Corp. (NASDAQ: SCHL) in the S&P MidCap 400, and Scholastic will replace Lincoln Education Services Corp. (NASDAQ: LINC) in the S&P SmallCap 600. Lincoln Education Services currently ranks 600th in the S&P SmallCap 600 and is no longer representative of the small cap market space.
Top 10 Low Price Stocks To Invest In 2014: Safran SA (SAF)
Safran SA is a France-based high-technology company which produces aircraft and rocket engines and propulsion systems. It divides its work into three segments: Aerospace, Aircraft, Defense and Security. The Aerospace Propulsion division provides engines, turbines and parts for aircraft, and rocket boosters for civil, military and spatial markets through several subsidiaries, including Snecma, among others. The Aircraft Equipment division produces landing gear, wheels and carbon brakes, aircraft engine nacelles and airborne power electronics through its subsidiaries, including Aircelle, among others. The Defense division includes the subsidiary, Sagem, and makes systems and equipment for inertial navigation and other defense applications to be used on military transport and combat aircraft, helicopters, warships, armored vehicles and artillery systems. In October 2013, the Company completed the sale of its United States-based subsidiary, Global Motors Inc to Allied Motion Inc. Advisors' Opinion:- [By Sofia Horta e Costa]
Vivendi SA climbed 2.7 percent after posting better-than-estimated third-quarter profit and saying it plans to spin off its French phone carrier SFR by July 2014. Serco Group Plc (SRP) increased 1.7 percent as UBS AG upgraded the stock. Safran SA (SAF) lost 3.2 percent as its largest shareholder sold a stake.
Top 10 Low Price Stocks To Invest In 2014: LSI Industries Inc.(LYTS)
LSI Industries Inc. provides corporate visual image solutions primarily in the United States, Canada, Australia, and Latin America. It operates in three segments: Lighting, Graphics, and Technology. The Lighting segment manufactures and markets outdoor and indoor lighting, canopy lighting, landscape lighting, light emitting diodes (LED) lighting, light poles, and photometric layouts products, as well as lighting analysis services. The Graphics segment manufactures and sells exterior and interior visual image elements for use in visual image programs. It offers signage and canopy graphics; pump dispenser graphics; building fascia graphics; decals; interior signage and marketing graphics; aisle markers; wall mural graphics; fleet graphics; prototype program graphics; and solid state LED video screens for the sports and advertising markets, as well as installation services for graphics products. The Technology segment designs, produces, and supports light engines and large fo rmat video screens using LED technology; and specialty LED lighting. Additionally, the company offers menu board systems. It serves commercial, industrial, and multi-site retail markets; petroleum/convenience stores; sports and advertising; and entertainment markets. The company sells its products through regional sales managers, independent sales representatives, and distributors. LSI Industries was founded in 1976 and is headquartered in Cincinnati, Ohio.
Advisors' Opinion:- [By Dan Caplinger]
In Daktronics' report, be sure to look at how the company compares to results that industrial-lighting and display competitor LSI Industries (NASDAQ: LYTS ) announced late last month. Even with a 5% gain in revenue for its March quarter, LSI posted a loss, showing the difficulty in producing high-margin business in the industry. For its part, if Daktronics can keep pushing past its operational challenges, it should be in better position to stay profitable both this quarter and well into the future.
Top 10 Low Price Stocks To Invest In 2014: Flamel Technologies S.A.(FLML)
Flamel Technologies S.A., a biopharmaceutical company, engages in the development and commercialization of controlled-release therapeutic products based on its proprietary polymer based technology in the United Kingdom, Ireland, the United States, France, and Europe. The company develops nanogel Medusa technology, which is intended to provide controlled release following injection of therapeutic proteins, peptides, and other molecules; a microparticle adaptation of the Medusa platform that is intended for use in the delivery of smaller proteins and peptides; and Micropump technology, a microparticle technology for oral administration of small molecule drugs with applications in controlled-release, taste-masking, and bioavailability enhancement; and Trigger-Lock technology, an adaptation based on Micropump technology, which is intended to minimize the misuse and abuse of medications subject to abuse. Its principal product based on Micropump technology is Coreg CR, which is intended for the treatment of moderate to severe heart failure and left ventricular dysfunction following myocardial infarction. The company?s products under development based upon Medusa technology include Interferon-alpha, a naturally occurring protein that the body uses for the treatment of Hepatitis C virus and as a immune response; and FT-105, an injectable insulin formulation for diabetic patients. Its products based on its Micropump technology comprise LiquiTime for the elderly and pediatric patient patients, or others who have difficulty swallowing. The company has strategic alliance with Baxter International, Inc.; GlaxoSmithKline; Merck Serono; and Pfizer Inc, as well as has a joint development agreement with Digna Biotech, S.L. Flamel Technologies S.A. was founded in 1990 and is headquartered in Venissieux, France.
Advisors' Opinion:- [By Garrett Cook]
Healthcare shares gained 0.81 percent in the US market on Friday. Top gainers in the sector included Shire plc (NASDAQ: SHPG), StemCells (NASDAQ: STEM), and Flamel Technologies SA (NASDAQ: FLML).
- [By Anna Prior]
Flamel Technologies SA(FLML) said the U.S. Food and Drug Administration has approved the company’s new drug application for Vazculep, an alpha-1 adrenergic receptor agonist indicated for the treatment of clinically important hypotension resulting primarily from vasodilation in the setting of anesthesia. American depositary shares rose 5.1% to $14.78 in premarket trading.
- [By Garrett Cook]
Healthcare shares gained 0.81 percent in the US market on Friday. Top gainers in the sector included Shire plc (NASDAQ: SHPG), StemCells (NASDAQ: STEM), and Flamel Technologies SA (NASDAQ: FLML).
Top 10 Low Price Stocks To Invest In 2014: Euro FX(P)
Ecopetrol S.A. operates as an integrated oil company in Colombia, Peru, Brazil, and the U.S. Gulf Coast. The company engages in the exploration, development, and production of crude oil and natural gas. As of December 31, 2010, its proved reserves of crude oil and natural gas consisted of 1,714.0 million barrels of oil equivalent. The company also transports crude oil, motor fuels, fuel oil, and other refined products, as well as mixture of diesel and palm oil. It owns transportation network consisting of 3,003 kilometers of crude oil pipeline directly, as well as an additional 2,178 kilometers of crude oil pipeline with its business partners; and 3,017 kilometers of multi-purpose pipelines for transportation of refined products from refinery to wholesale distribution points. As of the above date, Ecopetrol S.A. owned 58 stations with a nominal storage capacity of 19 million barrels of crude oil and 6 million barrels of refined products. In addition, the company owns and o perates refineries that produce a range of refined products, including gasoline, diesel, kerosene, jet fuel, aviation fuel, liquefied petroleum gas, sulfur, heavy fuel oils, motor fuels, and petrochemicals, including paraffin waxes, lube base oils, low-density polyethylene, aromatics, asphalts, alkylates, cyclohexane and aliphatic solvents, and refinery grade propylene, as well as provides industrial services to third parties. Further, it markets various refined and feed stock products, including regular and high octane gasoline, diesel fuel, jet fuel, natural gas, and petrochemical products. The company was formerly known as Empresa Colombiana de Petroleos and changed its name to Ecopetrol S.A. in June 2003. Ecopetrol S.A. was founded in 1948 and is based in Bogota, Colombia.
Advisors' Opinion:- [By Rick Aristotle Munarriz]
Frank Micelotta/Invision/The Associated PressIn a new Netflix sitcom, Lily Tomlin (left) and Jane Fonda play former foes who unite when their husbands desert them. An identity theft specialist lost its identity, a soda maker teamed up with an old-school appliance brand, Walmart made a play for video games, Netflix announced a new show and yet another online service upped its subscription price. Here's a rundown of the week's smartest moves and biggest blunders in the business world. Netflix (NFLX) -- Winner The leading video service keeps building its digital catalog of original content. Netflix announced on Wednesday that it will be the home of "Grace and Frankie," a new sitcom starring Jane Fonda and Lily Tomlin that's partly the handiwork of "Friends" creator Marta Kaufman. The first season will debut next year. We naturally won't know until we dive into the 13 half-hour episodes come 2015 if the show is any good, but that's also the point of Netflix beefing up its portfolio of first-run shows introduced exclusively on Netflix. Walmart Stores (WMT) -- Loser The world's largest retailer is getting into the video game resale business. Walmart announced on Tuesday that it will begin accepting trade-ins at most of its stores next week. The discounter will swap the games for in-store credit. It will then send off the trade-ins to get refurbished. It will start offering the pre-owned wares later this year. The market is playing this out to be a big hit for GameStop (GME), but let's not kid ourselves. GameStop's sales of pre-owned games fell sharply in 2012 and have gone on to decline in each of 2013's first three quarters. Walmart won't make things easier, but this was already a fading market. Too many new systems rely on digital delivery, making physical discs and their eventual resale obsolete. Walmart's late to the game. SodaStream International (SODA) -- Winner Making soda at home is as popular as ever, and niche leader SodaStream is getting a boost wi
- [By WALLSTCHEATSHEET]
Pandora is an Internet radio company that attempts to match listeners with their preferences in order to discover music they love. The company has just revealed who the new CEO of the company will be. The stock has been rising higher in recent quarters and is now trading at highs for the year. Over the last four quarters, earnings have been mixed while revenues have been rising, however, investors have expected more from the company. Relative to its peers and sector, Pandora has been a year-to-date performance leader. Look for Pandora to continue to OUTPERFORM.
- [By Paul Ausick]
Big Earnings Movers: The Gap Inc. (NYSE: GPS) is down 1.3% at $41.32 after reporting earnings last night. Pandora Media Inc. (NYSE: P) is down 1.5% at $29.23. Marvell Technology Group Ltd. (NASDAQ: MRVL) is up 5.4% at $14.57.
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