UPDATE: This happened to be the ONLY sharing of stock purchases I ever posted…And it just so happened to be the WORST stock pick (or at least one of them) that I ever made. Let that be a warning about getting your stock info here!!
On the other hand, my wife and I do live a modestly comfortable lifesyle with support from the dividends from our stock portfolio, which I attend to every day. I might recharge this “Monk Stocks” column, but let my first foray be a warning!
Yours in peaceably profitable prosperity— Bear
I bought a little bit of SandRidge Permian Trust (PER) this morning at a little over $17.00 a share. It seems to be a solid little oil and gas “trust” company with interest in over 1300 producing wells. The reason I bought today is because it pays (at these prices) a very nice 14% dividend, but also because I’ve been buying big and little pieces of SandRidge over the past year or so and wanted to average my cost a little. (I bought at mostly higher prices–as high as $23.00– but also a little bit at a lower price $16.00)
So what’s a lay monk doing buy stocks? In these days, it’s a little bit like hoeing the garden, planting an orchard, having a milk cow. Yes, all of our “monk actions” are supposed to be for the love of God (the love of love, the love of truth, beauty and world peace). Yet money is part of God’s creation, too, yes?
This first “Monk Talks Stocks’ column is not to defend or detail my stock investing but rather to simply let my friends and fellow travelers know that I do intend to (somewhat regularly) write about stocks and investments, theory and practice, hopefully with at least a modicum of compassionate and a holistic frame of reference. I would appreciate comments and feedbacks.
Very quickly, even though I’m an ex-stockbroker, let me forewarn you that my basic interest is no longer trying/hoping to make money by trading in and out of the market. I’ve finally come to understand that nobody really knows what is going to happen in tomorrow’s market, even though the stats might give a good hint (much like the NFL.) These days, I’m no longer trying to predict the future but rather simply “purchasing current income.” Thus, I’m on the lookout for sound ”current income,” sources, rather than capital gains from buying and selling.
In other words, rather than hoping to make a killing (or even make a little money) by buying low and selling high I’m much more interested in current dividends and distributions of a company. Thus, I look at silly old things like the fundamentals of the company (net asset value, revenue and income growth, debt level, etc.) their past dividend record, their ability to pay future dividends, their competition, their long-term outlook, and what kind of management is in place, as well as, to a lesser degree (because it tries to predict the future), the supposed long-term outlook for the industry sector.
I would of course love to buy low and sell high, but I’m basically looking for vehicles that provide regular cash income. Once those vehicles are in place, and the income is flowing, it doesn’t make a whole lot of difference (theoretically) if the market values these vehicles higher or lower than what I originally paid for them, as long as income is secure. Of course, I prefer to see my stock prices go up, and tend to go uggh when they go down, but with this “purchase income” approach, the ups and downs of the market (e.g., particular daily stock prices) generally don’t have too much influence on my monthly cash flow. The hardest part of this “buy income” strategy is transcending the deeply ingrained emotional attachment to principle, which we have been taught is “absolutely precious.” I’ve learned (somewhat) to let principle fluctuate on a daily basis (which it always will in the stock market) and rely instead on the steady cash flow, seeing it as even more “precious” than so-called principle. It’s called the “sleep easy” method of investing. Where you buy an income stock and let it pay for years and years without trying to time the market, e.g. get in and get out with the highs and lows. I’d rather sleep easy, and let my investments pay regular returns.
If you’re interested in hearing what I’m doing in the market (my “yay’s” as well as my moans and groans), with no promises about getting rich, and maybe participating in the conversation about how to invest and still stay peaceable with at least a modicum of social responsibility, check back here and/or let me know at bear@zenmoneygrubbing.com
Be back at you soon…
