Where do I want to be?
Do I want to look at a stock price and know where things stand with the stock in question?
That’s where I want to be.
It’s not going to come for free.
What will it take?
Looking at the stock…
…for an year or two.
That’s what it will take.
How boring, you say?
When stock market investing seems boring…
…that’s when you’re doing it right.
Excitement and roller-coaster rides are for video-game pleasure, and for making losses.
Money is made when it’s outright boring out there.
Where do you want to be?
In the money?
I thought so.
Then, please get used to boring and don’t ever complain again that things are boring.
How does one position oneself in such a manner that one studies a stock for an year or two.
Let’s put some skin in the game.
I know, this phrase is becoming more and more popular, what with Nicholas Taleb and all.
Yeah, we are picking up stock.
The one we wish to observe for an year or two.
Why pick it up? Why not just observe it?
You won’t. You’ll let it go.
Because it’s not yours.
So we pick up the stock? What’s the point of observing if we’re picking it up now?
Well, we’re picking up a minute quantity – one quantum – now. That gets our skin into the game. Then we observe, and observe. Anytime there’s shareholder-friendly action by the management, we pick up more, another quantum. We keep picking up, quantum by quantum. Soon, while we’ve kept picking up, we’ve observed the stock for so long, that now, one look at the stock price tells us what kind of margin of safety we are getting in the stock at this point.
Now, future entries become seamless. One look and we have a yes or no decision. Isn’t that wonderful?
That’s where we want to be.