Financials Matter

"It's Not Just About Finance"

How to Win by Selling Too Soon

This is a topic that many find difficult to digest.

A lot of it has to do with our conditioning and ongoing indoctrination from the boyz in the “Club” about how we should “Buy and Hold.”

The rationale is simple:  “Buy and hold companies that can weather economic storms and you’ll be fine.”

But what the boyz WON’T tell you is how most people who bought and held (great companies) through the Great Depression, died long before their stocks became profitable decades later.

And they won’t tell you how the ones who were bold enough to trade during the depression made untold fortunes.

The classic example of this is John Templeton.

Templeton, during the Depression, bought 100 shares of each NYSE listed company which was then selling for less than $1 a share.

In 1939 Templeton bought 104 companies, 34 which were in bankruptcy.

He later made a fortune when USA industry picked up as a result of World War II.

According to Templeton, he called his broker the day World War II began and instructed him to purchase every stock trading at less than a dollar.

Templeton became known for his “avoiding the herd” and “buy when there’s blood in the streets” philosophy.

He also was known for taking profits when values and expectations were high.

The point is that values change and most people are too greedy and/or blind to recognize the changes.

The most common (and stupid) excuse is, “Well, I don’t want to pay the taxes on my gains.”

Be sure to remind me of that when your profits go out the window in a declining market.

Anyway, be sure to read our July newsletter where we give you tips on how make this strategy work for you.

Get it HERE.

You’ll thank us later.

And don’t wait because our prices are going up in August.


Translate »