Investing During Volatile Times

There are certain rules for investing during periods like ours. What they are depends upon the type of investing you are undertaking.

For traders:

1. Keep horizons extremely short. A day or two is it.
2. Cut losses very quickly.
3. Take profits just as quickly.
4. Stick with highly liquid issues.
5. Think nibbling, a little here and more there – piranha style.

For intermediate investors:

1. Be prepared to get stuck. Stick to issues you would not mind holding.
2. Set targets and stick to them.
3. Liquidity is not as important, but quality is.
4. Think reasonable returns – shark bites.

For long-term investors:

            1    Ignore the economic chatter and concerns of the moment.

            2.   Focus on the business. Is it durable and will it become more valuable over time?

            3.   Know the management. Are they investor friendly or self-serving?

            4.   Time investments to take advantage of down periods. A little at a time does it.

5.   Be realistic about counting returns for any given period. Time is on your side – think generational compounding.

The Bull and his partners are long-term investors. This is the style that has produced the best returns through many different financial periods. We like having time on our side. We think you should too. Whatever way you invest, mind the rules, and stay steady my friends.

El Toro Solo