So, looking at my watch list tonight some pretty good stocks came up on my sale list.  (These stocks are below their 50 and 200 day moving averages right now.)  These include:

Amgen (AMGN)
Barnes & Noble (BKS)
Walmart (WMT)
Costco (COST)
Electronic Arts (ERTS)
Coca Cola (KO)
Microsoft (MSFT)

If you have some cash laying around and a long-term trading mentality, even shorter term really, these could be good stocks to look into purchasing before Monday morning, (even though it looks like the market is going to take a dip lower Monday, but we'll see.) 

Have to make your decisions based on what you know, not what you think the market will do. All of these companies are great companies.  I'd invest in Walmart, Costco and Coke before the others though.  That's just my opinion.

Invest in peace...

$$ wow, all those people who panicked after the drop last Thursday and sold are kicking themselves today, aren't they? As I always say, drops are a short-term blip in a longterm traders portfolio. Don't over react to things that are only temporary. I seriously considered dumping some stocks for about 3 seconds. Then I just held tight. That's what you should have done too. Or bought on the drop.

Invest in peace...

So, looking at my watcher list today, a whole ton of stocks fell below their 50 and 200 day moving averages.  Here's a few that perhaps you should take a look at and think about investing in.

Fedex (FDX)
Amgen (AMGN)
Colgate (CL)
Costco (COST)
Proctor & Gamble (PG)
Chesapeake Energy (CHK)
Coca Cola (KO)
Walmart (WMT)
Barnes & Noble (BKS)
Microsoft (MSFT)
Johnson & Johnson (JNJ)
General Mills (GIS)
Hot Topic (HOTT)
Kellogs (K)

All of these stocks dropped below their averages in the last day or two, also triggered by the mistake in the market yesterday, so it could be a great time to grab a few of these stocks and hold em for awhile.

Invest in peace...

Yep, the market is going down this week.  And to that I say....so what?  Didn't we just go through a massive crash that took 40-50% of everyones money away a year or two ago?  Wasn't everyone saying they'd never be able to retire and would have to sell their house and kidneys to live?  And wasn't it just a blip and everyone came back to where they were if they didn't panic?  Of course.

As long as you invest in the best, biggest companies with long-term track records and name monoplies, you're fine.  As a matter of fact, you're better than fine because now is the time to grab some shares because they are on sale!  Don't panic, think long-term!

Has Apple ($AAPL) really done anything bad to deserve their share price to go down?  Not at all!  As a matter of fact, the iPad has DESTROYED in the market place, sold out almost everywhere and well on it's way to becoming the fastest product to generate one BILLION, with a B, dollars in revenue.  Apple is on fire and no one can stop them or even catch them at this rate. 

So, relax!  This week is a tiny blip on a long term investment chart.  Go play golf, quit starting at your stock prices every five minutes and enjoy life.  Your shares will be there tomorrow and, at some point down the road, they will be worth more than they are today and it will all be ok.

Invest in peace...

At the Berkshire Hathaway meeting last weekend, the unbelievably funny straight shooter Charlie Munger had a great piece of advice.  Paraphrasing he said. 

"We don't have to be exceptionally smart, we just have to avoid being stupid.  If you avoid being stupid, you'll be ok.  Unfortunately, a lot of people do a lot of stupid things."

This is so true.  Talk to any of your friends and family and I'm sure you have story after story of things they've done that you go, huh?  If they had just avoided doing that one stupid thing, they'd be in such a better place, right?  Same with you, I'm sure.  I'm sure you can wrack your brain and think of a few stupid things you've done.  If you could go back and not do those stupid things, would you be better off?  Probably.

So, don't try to be a genius and don't think you need to be wiser than everyone else.  Just be less stupid.  Avoid stupid mistakes and you'll be doing better than the majority.

Invest in peace...

Please join me in supporting the Arthritis Foundation in its efforts to find a cure for Arthritis and its related diseases. Each year since 2006, I have bicycled from San Francisco to Los Angeles to raise money to help find a cure for the 46,000,000 Americans and 300,000 children (yes, this is not only an "old person's" disease) with some form of Arthritis.Visit www.californiacoastclassic.org for more info.  

I have set a personal goal of raising $6,000. Please help me reach this goal by DONATING on line at our secure web site at www.cccsocal.kintera.org/paulson or send a check to me payable to the "Arthritis Foundation". Thank you so much for your generosity and support. Working together, I know we can make a difference. The ride takes place 9/25 - 10/2/10.

Yesterday I went to the Berkshire Hathaway Metting (BRK.A or BRK.B) and I was blown away by how funny and knowledgeable Charlie Munger and Warren Buffett were.  They spent an entire day answering questions from people, a lot of which were stupid questions, IMO, but they gave them sufficient answers, but the biggest piece of advice I came away with yesterday was a throw away comment by Warren Buffett.  To paraphrase, he essentially said:

"You buy a house as an investment and you don't look at the value of the house hourly or monthly or even yearly.  You buy the house knowing that if you keep it long enough it will be worth more than you paid for it."

He's very opposed to looking at stock prices and this was a great way to think of things.

While I'm against buy and hold because you're leaving a LOT of money on the table, I am for long-term investing in great companies and this is a great way to think about things.  

As I try to tell people, when bad things happen in the market, you have to remember it's just a blip.  Just as when your roof leaks and needs to be replaced, you don't see off the entire house, you fix the roof and it was a blip, but then everything is better and you move on, AND the house is worth more because of that blip because it now has a new roof.

This was great advice and I'm going to use this perspective going forward in my trading.  Each stock I buy is a new house in my neighborhood of investments.

A huge thanks to Warren and Charlie, it was a wonderful day and I highly suggest anyone who invests grab a few shares so you can go next year.  Time is running out to hear the wisdom of these two great men who are now in their 80's!

Invest in peace...