Long Term Value KH

Description:

I try to pick stocks I won't sell for at least a year...preferably that I won't sell for at least five years or will virtually never sell. I don't have the time to research continually, and frankly I think the only way an amateur can do well at this is to put the research in at the beginning and then buy a stock that will (hopefully) experience gradual appreciation both in good markets and bad. Ie., I don't waste time with yearly price targets and gimmicky 'plays.' I also reinvest dividends on all of my stocks. Between taxes, commissions, and my evaluation of the ratio of my risk/reward payoff to the amount of work I'd need to do, this seems like the only sensible way for a small-fry like me to invest (other than using mutual funds and my 401k of course).

HOWEVER, I have also found that certain stocks overperform so much in a short time, that one must sell them (even if one loves the company), because they have nowhere to go but down, in which case one may ride a low-growth cycle in that stock when one could be making money elsewhere. Examples would be CCF, which I sold at $31/share, TM, which I sold at $130/ADR. I'm starting to feel that way now about BHP....
SymbolStart PriceReturn Value
MEOH$25.7811.83%
OVTI$14.72994.55%
VEURX$39.10-44.65%
MO$69.69-53.90%
BAC$51.41-85.53%
XOM$77.795.32%
PG$63.54-0.93%
BHP$50.8725.85%
ACH$29.70-63.27%
WIRE$30.03-15.25%
HMC$32.50-0.65%
ALL$54.79-37.49%
MGPI$9.59-63.50%
Symbols Deleted Since Tracking Began
PTR$116.9010.87%
ABR$31.30-80.70%
WMT$47.8637.23%
GOOG$475.5024.99%
F$8.0135.33%
UFPI$47.11-18.76%
SWC$11.56-22.58%
RAIL$54.81-61.78%

Average Return: -24.43%

Success Rate: 30.77%

Tracking Started: 04-05-2007

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