Aug 262015
 

The headlines this week are all about China woes, and how that domino has started a sell off throughout world markets. While pessimist blood runs in the streets, an optimist is gleeful about being give an entry point opportunity.

I’ve always been a “Growth-At-a-Reasonable-Price” investor, commonly referred to as GARP. Adding to my GARP formula, I like to invest in companies that have a “unique moat” that makes threat of obsolescence from competition or immediate technology innovation hard to imagine (I guess I’m a GARPUM investor). Lastly, I believe you must know your investment thesis… GARPUMIT — For the first time in a while, a few momentum companies that have been on fire (and therefore outside my GARP radar) have been discounted.

yesterday-you-said-tomorrow-nike

People often become paralyzed trying to pick the absolute bottom of a market which is both logical and illogical. It is logical to have this desire, but logic also says that your odds of buying a stock at its low is close to impossible and determined by luck, not skill. Like it or not, irrational price swings exist and will continue to exist, efficient market theory be damned: there is plenty of evidence.

Let’s check where these issues will be on January 2017. If I’m right, they will be up 30 – 50% in only 18 months and should double in four years (by September 2019). I like putting it in writing so that all of us can learn from opportunities. GARP Stocks to consider, IMHO:

Apple @ $105
Starbucks @ $52 — in truth, this is not as much of a sale but still a worth buy
Nike @ $105

Optimists have the innate ability to be brave because they have hope. Optimists buy when investments are cheap. Did you buy?

I.M. Optimisman

Aug 212015
 

Some people are cheap, some are value-oriented, and some are not careful with their spending habits. I fall squarely into the value-oriented Costco legion. I love getting a great deal but I rarely buy the absolute least-expensive version of a product, believing in the idea that you tend to get what you pay for.

costco

My quest for best-value-for-the-buck is not obsessive because it is invariably tempered by my #1 productivity habit/goal: minimizing the time required and invested in any pursuit. I remain first-and-foremost, a time-focused “how to best invest (and not spend) my time” individual, but I also want to know that I got a great deal.

Which type are you? If you are value-oriented, read on.

I’ve recently noticed a subtle but important mental trap that must be avoided, if you are to maximize value out of any purchase: don’t look back once a decision is made, unless the return policy is still in effect and in serious consideration.

cruise

For example, the water-is-truly-under-the-bridge after you get on a cruise ship for your family vacation. Your goal must transition, leaving the payment transaction in the rear-view mirror and looking forward to maximizing your enjoyment and really experiencing the trip. This will not happen if you continue to question the decision, complain about the price already paid, or cut corners on every discretionary expense that accompanies the primary purchase. If you stay focused on price paid, you will enjoy the trip, or the car, or the smartphone, tablet, or laptop a lot less than you would have, because you will still be polluting your inner zen with a ricocheting thoughts about “should I have made this choice — and — was this a good buy at the price that I paid…” Optimistic value-seekers understand that there are two sides of a purchase and therefore, plunge in with both feet, enjoying the purchase, maximizing their experience, and having fun, without complaints.

My advice is that the minute you are on the far side of any purchase, never look back. Seize the day (or purchase) for all you can get out of it.

I.M. Optimism Man