iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
22,010 Blog Posts

A Quick Philosphy on Long Term Investments

I bought POWI today, even though it’s up after a great earnings report, because I believe the incandescent light bulb is a thing of the past. POWI plays an integral part in making the LED bulb successful, through its parts. On top of that, they will soon be in millions of smart phones, providing ‘quick-charge’ technology to the masses.

Many months ago, I asked you “when is a good time to buy a winner?” The answer is, with very few exceptions, “any price.”

Sometimes we lose the forest for the trees, attempting to market time. If you have a stock that you feel will do great, long term, just buy it and quit worrying about short term moves.

(I am talking to myself more than you.)

My condensed philosophy for investing in stocks, longer term, is quite simplistic, but entirely logical.

If you worked at XYZ corp., right now, would you participate in a stock options program and do you think there is significant upside to the company?

Forget about the stock. Is the company in a position to undergo rapid growth, which can lead to wealth creation for its employees who participate in a stock options program?

If the answer is yes, go long and dollar cost average, every month, as if you were an employee.

Having said that, I am a buyer of POWI, longer term, and if I can contain myself, I hope to sell it north of $100.

They are, without a doubt, a game changing company in the smart phone space.

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5 comments

  1. Yabollox

    Always buy your company stock to maximize the employer match. Not a penny more, and diversify away from your company as much as possible after that. Your finances are so intertwined with your employer you need to get assets away from there as much as possible for diversification. Analyzing your own company prospects is just too hard, you cannot be objective.

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  2. Yabollox

    ELLI reports tomorrow. I’m buying some today.

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  3. Daniel Norris

    Scam Hyip Sites;Best Hyip Sites
    http://www.perfect-money.org

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    Im doing a presentation tommorw and i need a quick and easy to understand summary of David Humes main ideas or philosphies
    please help!

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