Thursday, October 09, 2014

Unintended Consequences

While my portfolio has struggled mightily since the end of August (down about 18%), it could have actually been worse. When I decided to revise my approach, I sold out of seven stocks. Not because I didn't like them any more, but because I wanted to clear the decks for new approach.  Those seven stocks are down almost 10% since I sold them. BBEP (-17%) and TLM (-19%) being the big losers as oil has increasingly become out of favor.  Then I see where GPS is trading down 10% this morning and the CEOS is stepping down as they continue to struggle with many other retailers.

It is tough out there investing right now. I have to admit my confidence has been shaken a bit. I am glad I am going more formulaic as I am doubting my picking ability.

1 comment:

John Carney said...

Marsh,

Mr. Random gave me the other five stinkers.

I looking for an additional legacy and your BIG MFI may be it for you and for all of my family.

If you are to leave money it just might not help your loved ones. Good educations go a little further.

You are right to doubt your stock picking ability. Nobody beats the market over 10 years. Yes a few do!

A good legacy has got to be formulaic. It helps you and it may help the folks you care about for a very long time.

Other wise just buy VTI or SPY.