Comfort Zone Investing: Timing Is Everything

Filed under: Citigroup Inc. (C), JPMorgan Chase (JPM), Bank of America (BAC), D.R.Horton (DHI), Lennar Corp'A' (LEN), Comfort Zone Investing

When Russell Sage was asked how to to become wealthy, he replied: "Buy straw hats in the winter." Who was Russell Sage? A Congressman from New York who was also a Wall Street financier who died with $70 million ... in 1906. His (sage) advice still works today, especially for stocks.

If you can buy stocks when they're out of season, or more likely, out of favor, you've got a much better chance of making money than when everyone else is jumping on the band wagon. The key item to remember is this: there are four seasons in a year ... every year, and when you buy straw hats in the winter (on sale no doubt), you know summer will be coming and their price will go higher. There are no seasons in the stock market. A stock out of favor now could stay that way for a long, long, long time. Even go bankrupt. So don't believe that a "cheap" stock now will automatically become valuable later.

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Comfort Zone Investing: Timing Is Everything originally appeared on BloggingStocks on Sat, 18 Sep 2010 10:30:00 EST. Please see our terms for use of feeds.

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