Disclaimer: This is NOT investment advice. This is merely a collection of layman thoughts. If you need investment advice, seek it from a qualified and licensed professional. Investing in stocks involves SUBSTANTIAL risks.
Today Mon. August 1st 2011. I purchased AGU stock at about approximately 87.93 per share. I say approximately because there was more than one transaction and the price averages out to slightly less than that I believe.
At any rate. AGU will have it’s earnings report on Wednesday.
I suspect that they may show results that top analysts expectations but I cannot be certain that will be the case.
I also understand that this may not have been the best time to invest. Congress is still waffling on the debt ceiling being raised.
As of this writing, the bill passed the House and is going to the Senate this very evening.
If the Senate does not vote to raise the ceiling, that COULD mean that there will be a market drop in the morning. This could be potentially bad for me.
On the other hand, if the Senate does pass the bill tonight, the market could react positively in the morning. In that case, I may be tempted to dump my stock and take the profits.
This is my basic plan. Do not follow my plan. I take excessive risks. I do so because I choose to.
Now, it will be interesting to see what happens in the morning, won’t it.
You know it is funny, a lot of people talk about this ‘buy and hold’ strategy. Big institutions in particularly want you to think that way. Why? Could it be that they cannot maneuver in and out of a stock as quickly as an individual investor??? HMMM>>> I wonder… ??
Many people like to bring up Warren Buffet when discussing ‘buy and hold’. I read and I cannot and have not verified this little tidbit that ‘they’ may be leaving out. However, it is my understanding that yes, Mr. Buffet does ‘buy and hold’ but he also writes covered calls on the stocks he is holding. In short, he sells ‘insurance’ to other investors.
Again, I am not at all sure that this is true, but it is what I read / understood from an unverified source. If true, perhaps that is the ‘real secret’ to the ‘buy and hold’ strategy.
If you have thoughts, ideas or comments, please leave them below.
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