No. of Recommendations: 3
My investment strategies have included value investing and buy 'n hold.

With value investing, I've looked for opportunities to buy good companies when they were cheap. Oil companies are presently examples of that.

I usually buy 'n hold stocks and never sell them. Unfortunately, company CEOs seem to think they should treated their companies like disposable tissues, selling them out and reorganizing them for what usually seems like trivial reasons.

One buy 'n hold strategy I've used is to buy good companies with periodic investments in more stock, usually using DRIPS and also reinvesting dividends.*

That's often worked fine for me, but you can still have the problem of CEO selling you out and subjecting you to floods of unwanted cash and taxes.

That happened to me yesterday, when I opened a letter from Computershare or whatever and a check for $304,000 for my Piedmont Natural Gas Company stock fell out.

Piedmont was a nice small gas utility that I've been buying with their DRIP since 1998. Now I have all this cash and nothing to do with it!

Worse yet, Bayer is buying up Monsanto, another DRIP of mine. When that deal goes through, I'll get another $250,000 cash or so.

At age 66, I no longer have the 30-40 year planning horizon for investments I've been comfortable using in the past.

I suppose some more energy stock purchases are in order, but I guess I'm looking for some new stocks to buy with DRIPS, too.

* Unfortunately, buy 'n hold can have it's problems, too. Most famously for me was that my overly heavy ownership of Washington Mutual bank stock evaporated to zero during the last financial panic. That DID smart!

Seattle Pioneer
Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.