I had to correct a typo in my last post where I said that I view a 10 to 12% as possible on a year after year basis. That was either Mr. Right Brain talking or a Freudian slip. I view 10 to 12% possible when looking at an average annual return over long periods of time. The actual annual returns, even by an extremely competent manager, would have to have some negative years like 2008, along with some years with results over 20%. It is "impossible" in my view to achieve 10 to 12% consistently, with little or no variation, as Bernie apparently promised to do. Right Brain thinks the sky is the limit, no boundaries. If Left Brain would just cut Right Brain loose, the returns could be 50% compounded-daily, or so Right Brain is saying right now as I type this sentence. I manage my own portfolio to achieve better results than the S & P 500 with less volatility, using a large mixture of different types of assets. I am almost back to even for 2009. Last year and the first quarter of this year have been the toughest and most difficult period to manage money in my life, with the prize going to ones who lost the least or are within 10% of break-even.
One extremely small category in my asset allocation is what I characterize as the lottery ticket. It is primarily a sop to Right Brain to keep it involved in the decision making process ruled by the far more dominant Left Brain, iron hand in a velvet glove. Inspired decisions are not the province after all of the rigorous, cautious, lineal and disciplined Mr. Left Brain. CBG was a recent lottery ticket purchase that replaced another ticket called National Dentex (NADX) that went quickly from $1 to $4. I am more likely to keep CBG than a company like NADX, even after a double or triple because I have more confidence in the long term potential of CBG than NADX or the one that I sold today, Sucampo Pharmaceuticals (SCMP). The order was filled at $7.84 bought in February at $5.34.
Notable News 2/6/2009: NWSA, PBI, DBTK, AOC/ Buy of SUCAMPO/ AT & T BOND PRICING VS. TCs JZE and JZJ/Jobs I am interested in these small biotech companies but I recognize my limits in trying to understand them with no background whatsoever in medicine on science, though Mr. Left Brain is a strong advocate of the scientific method as applied to life including investing money.
Scientific method - Wikipedia, the free encyclopedia Now, Left Brain can give Right Brain something to do by finding a replacement for Sucampo and stop all of that distracting brain chatter.
I thought that I would listen to the Byrds Greatest Hits on Itunes this afternoon, many of their best songs were recorded in the 1960s as covers of songs originally recorded by Bob Dylan and Pete Seeger.
The Byrds - Wikipedia, the free encyclopedia
On a purchase like GJN, discussed this morning, I will use some GTC limit orders trying to catch a downdraft in the price. I will probably put one in at less than $11 and the other is in now between that price and my purchase today at 12, hoping to arrive at a full allocation with an average cost $11.5 or less.
I have a few orders for bonds in today that have not been filled.
DISCLAIMER:
I am not a financial advisor but an individual investor trying to navigate my way through a difficult market. I have never worked for a financial institution and never will. In these posts, I am acting as an unpaid financial journalist and an occasional political commentator. I am also aggregating financial news stories that I view as important and providing any reader of these posts, assuming there are more than a couple, with links to those articles, sort of a filtered, somewhat intelligent, free search engine. Any discussion made by me of particular securities is not a recommendation to buy or to sell. Trade at your own risk. Consult with your financial advisor prior to making any purchase or sale. I will try to identify my sales too but it may take a few minutes after I implement them to create a post explaining my reasons. The sale may before or after the post. Before buying or selling any stock, even one recommended by a trusted financial advisor, please research it and make up your own mind which is what I always try to do. Research would include reading reports, reviewing financial records, earnings estimates, sec filings and prior earnings releases and news. In this post, and all others by me, I am merely describing my reasons for purchasing or selling securities, and the potential pitfalls that I identified prior to purchase or the reasons for a sale. The securities mentioned in this and all posts written by me may not be suitable for others based on their unique financial position and risk profile. By way of example, it is unlikely that I will ever need the funds contained in my retirement accounts. Always read the prospectus before buying a Trust Certificate, bond, preferred stock or other bond or bond like investments. Information contained in my posts has been obtained from sources believed to be reliable but cannot be guaranteed. These posts by me do not constitute investment advice, nor shall they be construed as a guarantee of future results, or as an offer of any transaction in securities. All content in these posts is provided for informational and entertainment purposes only, and it is a form of entertainment for me.
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