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Author: NoEmotions One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 19379  
Subject: Kahuna CFA, a question sir Date: 5/31/2007 8:36 PM
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Dear Kahuna, CFA,

Though I don't know you personally, I do admire your investing prowess, the fact that in a previous email you stated that you had averaged 20% returns for a number of years and your informative emails.

I am wondering about your investing strategy. LTB&H works well, but having read "Rule#1 Investor", there is also that concept that states "sell when the technicals signal SELL (and when the price begins to drop), and buy when the techicals say BUY), or when there is potential future value in a company.

This current run up of the bulls is wonderful and bodes well for us all, but I am concerned about holding on too long. Right now there are no real issues in my portfolio, but I can sense that in time there will be.

What are your thoughts if you don't mind me askin', regarding LTB&H vs the philosophy that states sell when the technicals say sell and buy when the technicals say buy. Can both co-exist?

Right now, I subscribe to both philosophies holding companies where there is good value, solid management and a "forward movement" attitude followed by practical, measureable results. If something seems to go amiss with a company, e.g. floundering, "noone at the rudder", loss of good management I might reconsider holding that stock.

I also might consider selling if the "technicals" show a possible price drop in the near future.

For this year, my NYSE stocks are running a 13% growth which is not too above the averages, and my NASDAQ stocks are running almost 20% growth and the NASDAQ has a roughly 5% growth.

Sincerely,
Rhett
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Author: intercst Big funky green star, 20000 posts Top Favorite Fools Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11359 of 19379
Subject: Re: Kahuna CFA, a question sir Date: 5/31/2007 9:31 PM
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NoEmotions writes,

Dear Kahuna, CFA,

Though I don't know you personally, I do admire your investing prowess, the fact that in a previous email you stated that you had averaged 20% returns for a number of years and your informative emails.

</snip>


I think I'd wait for an independent audit of this claim before I acted on it.

Kahuna's record on CAPS makes him a below average performer.

http://caps.fool.com/ViewPlayer.aspx?t=01004279975285466200

intercst





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Author: ibnana Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11360 of 19379
Subject: Re: Kahuna CFA, a question sir Date: 5/31/2007 11:10 PM
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I noticed recently on the new boards listing that kahuna has started his own board so you can go there.....at your own risk. Also, make sure you use proper grammar when posting, or you'll get chastized.

http://boards.fool.com/Messages.asp?mid=25400113&bid=118345&days=365

Carol

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Author: MichaelRead Big gold star, 5000 posts Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11362 of 19379
Subject: Re: Kahuna CFA, a question sir Date: 6/1/2007 12:47 AM
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Right now, I subscribe to both philosophies holding companies where there is good value, solid management and a "forward movement" attitude followed by practical, measurable results. If something seems to go amiss with a company, e.g. floundering, "no one at the rudder", loss of good management I might reconsider holding that stock.

I also might consider selling if the "technicals" show a possible price drop in the near future.

For this year, my NYSE stocks are running a 13% growth which is not too above the averages, and my NASDAQ stocks are running almost 20% growth and the NASDAQ has a roughly 5% growth.

Sincerely,

Rhett


Rhett, if it works for you and it's obvious it is working, stay with your strategy and trust it. I think tailoring your own investment strategy is most important for several reasons one being you have your own gut experience. Moving away from that is a move toward disaster.

My metric for investment is mine that has worked for me: is there a market for the company's product? Can that market afford the company's product? Is the company's management smart enough to keep the cozy arrangement of the first two?

That's it. No technical analysis since I don't day trade, no pigeon entrails. I like the Gardener's approach to investing particularly don't be put into churning because someone is screaming. There's a lot that can be learned at TMF.

One other: if a stock causes me to lose sleep worrying about I sell it promptly. That hasn't happened often. Yet one more: if a stock requires looking at more than once a month it's not worth having.

Meanderings, to be sure. However, it's worked for me.

MichaelR




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Author: OldOne Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11364 of 19379
Subject: Re: Kahuna CFA, a question sir Date: 6/2/2007 11:02 AM
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I use a blended approach to my investing.

The majority of my holdings are in index funds, which are LTB&H, where "long term" is 5 years or more, sometimes a lot more. I also set aside some "fun money" where I can do analysis and trading.

In 1995, I had about 10% in fun money. In early 2000 my fun money equaled my safe money. Then came the big tech crash, and I lost much of it. After making readjustments, I reset my allocation back to 90% safe, 10% fun about 4 years ago, and instituted a "no margin" rule.

Right now, both have grown, but the fun money has grown faster. it is now 20-25% of the total. I just keep letting it run. Somewhere around a 50-50 split, the lessons of 2000 are going to come to the fore, and I intend to transfer some of the fun money back to safe money.

I always have to balance the urge to trade with the reality of 2000.

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