A great line from famed trend follower Larry Hite:
“Life is nothing more than a series of bets and bets are really nothing more than questions and their answers. There is no real difference between, ‘Should I take another hit on this Blackjack hand?’ and ‘Should I get out of the way of that speeding and wildly careening bus?’ Each shares two universal truths: a set of probabilities of potential outcomes and the singular outcome that takes place. Everyday we place hundreds if not thousands of bets - large and small, some seemingly well considered and others made without a second thought. The vast majority of the latter, life’s little gambles made without any thought, might certainly be trivial. ‘Should I tie my shoes?’ Seems to offer no big risk, nor any big reward. While others, such as the aforementioned ’speeding and wildly careening bus’ would seem to have greater impact on our lives. However, if deciding not to tie your shoes that morning causes you to trip and fall down in the middle of the road when you finally decide to fold your hand and give that careening bus plenty of leeway, well then, in hindsight the trivial has suddenly become paramount.”
You can think like that, or you can buy and hold and follow logic like this about famed mutual fund manager Peter Lynch:
Peter Lynch, the man who helped put Fidelity Investments on the map, is famous for saying, “Invest in what you know,” by utilizing your “local knowledge.” This local knowledge are those few things in which we have some expertise. Supposedly, all of us possess this expertise (although I have doubts about some I know) and can apply it to our investments selections. If Peter Lynch can pick up some of his best ideas by following his wife and daughter through the mall to see where they shop, I see no reason why the rest of us can’t start “green investing” by looking at the products we already use. From automobiles to household cleaners, there’s a world of Green out there waiting to be put to the test.
Sorry buddy, that logic is a stretch. What about “Crocs” (as one example):
…there are profits to be made on the upside to a super-hot consumer product or trend or stock, but be ready to hit the exits or even be short if the trend turns sour.
Bingo.
November 9th, 2009 at 9:57 am
green is another big con fostered on us by the little brains in DC.