Thursday, December 17, 2009

Beating the Market 2009

Overall I did pretty good. I have came out of the market 1,000 give or take than I put into it. I cashed out the WMT a little late, but just lost a little. For those of you that got the AMZN when I suggested it, (November 2008 to be precise) congrats to you guys. I do not think I mentioned it here, but this was perhaps a personal discussion with my Sushi Social crew. At that time I did not have enough to do so, but it is perhaps better to say I should of than shouldn't of. For those of you who did not have the means last year or perhaps are running to the store to buy tissue and a sit-com from not taking my advice there is always next year. Oh by the way, gold was nice to me too ;).

No, I knew e-readers were going to take off when I saw them. Especially with the increased usage of net books. I still am typing on the same Acer Aspire One I got a year ago and it still works the same! It is an amazing little device. When I saw people getting the I-pod touch for reading, it just made sense that there will be a demand for that as a stand alone device. And on the 7th day, the big box companies begatted e-readers! They decided to name their children "Kindle" and "Sony e-reader". It was a matchmade in e-marketing heaven.

People are probably wondering which stocks am I going to get next year. Of course WMT will be in the arsenal as it goes near the 40s. I understand two things: how fast technology moves and retail trends. This is what I pay close attention to. I really try not to follow the news too much unless the stock is at a highpoint and something will cause a market panic and drive it down. I want to get off the train ride because it is going downhill and I just want it to go uphill because my "house" is just past the next "valley". When I buy my ticket I want it to go "downhill" to the point at which risk is low and then "transfer" at "Selling bvld."

Three things I look for is structure of the company, aggressiveness, and image. All this information can be found for free. Buffett said it himself "the best information he has obtained about the market happens to be free". Study the companies before even think of investing a single dime into their servicies. If you do not like anything about the company then you will be wary of the company and too paranoid to even know when to buy and sell. And follow the golden rule: buy low; sell high. While I am not into shorting stocks are doing anything towards asking, I will say that in the future I will probably stick with what works. Investing in stocks work for me, but I will probably go into other ventures in the future. Currently at this moment I am trying to go to Japan to teach English, but that is not to say I will just turn a blind eye to an investment oppertunity.

Now I know that the best marketing wins; so I am not going to say that it was all based on product, but marketing think tanks. Apple was not the first one to come out with a MP3 player, but they are definitely the ones that made owning one the "in thing". Now look at the I-Pod: it is a device that has literally thousands if not million of applications for it, especially in languages. I might have to get one for the various pod casts that supports learning a foreign language since I love them so dearly. I am also impressed with the freshness that is the Flip Mino. I like some of the YouTube videos that are being made with it. Pure awesomeness in my opinion. While the amount I got was perhaps low compared to some investors the important thing is to stay in the black, not in the red.

May 2010 be profitable for all my viewers and thanks for supporting me this year. Your views and comments has kept me motivated enough to keep posting. I will continue to provide more blogs in the future.