The recent death of my father has brought me into full contact with the world of investing. He had a lot of investments in the stock and bond markets, and I've been the one in my family so far to look into and after them. I've found it so exhilarating that I began to understand why my dad was taken with investing. I began to buy individual stocks myself for the first time, rather than indirectly via mutual funds.
I'm in that dangerous place where I know a little more than nothing. If I were totally ignorant, I'd probably be all right because of the beneficent effects of random chance. Now that I'm aware of enough financial concepts I'll make decisions partly influenced by the crowd psychology of the investment world. Until I can get a better handle on my own financial emotions, I need to be very careful.
I bought several good companies I think I understand and about which I feel optimistic over the long run. For the record, they're Apple, Google, CSX Transportation, and Accenture. I purchased the shares about 7% or more off their recent highs. Yet they mostly have continued to fall. Listening to and reading the daily chatter of the financial press, I've come to realize that the commentators and analysts only rarely say anything of any relevance to a long-term investor like me. It's as if I've embarked on a backroad trip from Key West to Seattle (3,500 miles) with a bus load of people who are betting on the color of every traffic light and location of every stop sign along the way. I just want to make it to Seattle, and I'll enjoy the trip a lot more if I tune them out and get on with appreciating the scenery.
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