Friday, February 22, 2019

Take Some of the Money and Run

"If it's too good to be true, then it probably is." ~ old adage.

While I am enjoying the market recovering from the late 2018 decline, I realize that the rally won't continue forever.  That would be too good to be true.  The advance will end and a subsequent decline will occur.  At that point, I usually wish I had sold some shares earlier.  So I am using the opportunity to take some profits now so that I won't have seller's regret later.

When there are no or very low commission costs,  I like to take a gradual approach to selling for profits by selling only a few shares versus the entire lot.  That way if the market continues to go up, I can sell later for greater profits per share.  So going gradually allows me to lock in some gains, while hedging against a further advance.    If the market goes down, I will have taken some profits at a higher price, which gives me some satisfaction.

 Of course, if the cost is the $4.95 per trade, it isn't cost effective trade a few shares.   But if the cost is only a few cents or 0 per trade, then the above strategy can be done cost effectively.

For more on Reaping the Rewards, check back Fridays for a new segment.

This is not financial  or investment  advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Thursday, February 21, 2019

Blitzscaling - the future of work.

The company from which I retired was well known for being successful by using consumer research, validated innovation processes, and manufacturing/advertising scale to win in the market.  The time from idea to market would often take years.   The company was and is very successful.

Blitzscaling by Reid Hoffman offers a massively different approach for what businesses need to do be be successful in the Internet age.   Essentially, it's go fast, go big, and fix on the fly.   Fast iteration and clear focus on what's really important are also critical elements.

It's the best business book I've ever read.  I've been reflecting on what I would/should have done differently in my career.  I definitely recommend this book to anyone thinking of starting their own business, working for a start up, or being a change agent in an established company.

I am also going to share this thinking with our kids.

Disclosure:  This post is my own opinion and I receive no compensation for writing it. This site receives a sales commission from for purchases made through Amazon links. This commission has no effect on the price or service received by the purchaser.

For more on  Crossing Generations, check back  Thursdays for a new segment.

This is not financial, investing, career or business advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Wednesday, February 13, 2019

Characteristics Needed to Become a Millionaire

 A Woman Who Studied 600 Millionaires Found How Rich You Can Get Boils Down to 6 Things, No Matter Your Age or Salary  Here are the 6 things from the article:

  • Frugality, or a commitment to saving, spending less, and sticking to a budget
  • Confidence in financial management, investing, and household leadership
  • Responsibility, which involves accepting your role in financial outcomes and believing that luck plays little role
  • Planning, or setting goals for your financial future
  • Focus on seeing tasks through to their completion without being distracted
  • Social indifference, or not succumbing to social pressure to buy the latest thing
Overall, I thought this was a good summary.

For more on The Practice of Personal Finance , check back Wednesdays for a new segment.

This is not financial advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Tuesday, February 05, 2019

Making (Expensive) Razor Cartridges Last Longer

The multiblade razors are great for shaving, but they are so expensive.   A retired employee from a razor company told me a way to make razors last longer:  Dry them with a hair dryer.  His rationale was that even though the blades are stainless steel, they are so thin that residual water can cause enough oxidation (rust) to dull the sharpness of the edge. 

For a while, I've been drying the razors with a towel, which seemed to prolong the life of the razon.  Now I am trying the hair dryer method to see if I get better results.

For more on  Ideas You Can Use, check back Tuesdays for a new segment.

This is not financial or shaving advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Monday, February 04, 2019

Taking Some Profits from Purchases During 2018 Year End Dip

As the market was falling in December, we continued to take additional small positions in our core holdings.  We even made some purchases on December 24, 2018, which was the bottom of the decline.   Many individual stocks purchased on that date are up 30% and index ETFs purchased are up 15%, which would be a good gain for a year.

At this point, it is not clear whether the current advance is a bear market rally or the start/continuation of a bull market.   So I am being cautions and selling the additional small positions that have gains of at least 15%.  I won't be selling all eligible postions at once.  Rather I will be scaling in, to take advantage of the market continuing to rise.

If the market continues to rise, our core holding will benefit and we'll get increase profits from the sales.  If the market peaks and falls in the near term, we will have locked in some proftis and mitigated the decline of our core positions.

Either way, we will have greater profits that if we had not bought during the 2018 year end market dip.

For more on Strategies and Plans, check back Mondays for a new segment.

This is not financial or investing advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Sunday, February 03, 2019

Bear Schadenfreude

Schadenfreude - Pleasure derived by someone by another person's misfortune.

I am enjoying the effect January's "rip your face off" rally has had on numerous stock market bears.  Right now, I think pain trade will be FOMO on the potential February rally.  So I may get to enjoy schadenfreude in February also :-)

For more on  New Beginnings, check back every Sunday for a new segment.

This is not financial, investing, or social  advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC

Saturday, February 02, 2019

Brains or Bull Market?

"Don't confuse brains with a bull marker."~Wall Street adage

After a dismal December (and November) in 2018, the stock market has rallied with a vengeance.  January 2019 is the best January for the S&P since 1987.   Our accounts are up significantly this month, with several accounts hitting all time highs, despite the overall market still below all time highs.  Some of our stock purchases on Deceember 24, 2018 (now officially the near term bottom of the correction/bear market) are up over 30%.

Despite all this good news, I'm not feeling particularly brilliant.  In fact, I just feel lucky that it's still a bull market and we are reaping the rewards of being a participant.   Basically, we were most lucky with our contrarian buys.

Here are our lucky buys:
  • REITs - In early 2018, we started buying REITs, which had fallen precipitously  in late 2017 and early 2018 due to expecte Fed interest rate increases.  Some of the REITs were yielding as much as 7%.   It was a painful process since all of the REITs continued to fall as were were buying the over a three month period.  However, the strategy paid off as the REIT only account has shown a 26% increase over a year.  REITs owned:   WPC, O, NNN, LTC, VTR, HCP, GLPI, STAG and KIM.
  • December buys -  Despite the falling market in December, we added to our market index ETFs and bought trading positions of our core holdings.  Some of the index ETFs are up over 15% and some stocks are up over 30% since their purchase in December.
It didn't hurt that my company stock hit a new 52 week/all time high in January.

Bottom line is that I feel more lucky than smart.  So I am selling into this rally.   First I am selling any trading postions that have over 15% gains.   Second, I am trimming successful core positions (e.g. REITs) to take profits.

If the bull market continues, we will still benefit with our core positions.   If the bull market pauses and declines, we will have taken some profits.

Disclosure:  At the time of posting, we own WPC, O, NNN, LTC, VTR, HCP, GLPI, STAG and KIM.

For more on  Reflections and Musings, check back every Saturday for a new segment.

This is not financial, or investment advice. Please consult a professional advisor.

Copyright © 2019 Achievement Catalyst, LLC