Investing 102

[GregWeld]

How many of you remember Montgomery Ward? It went away years ago... Now it looks like Sears may be the next old line department store to fold. When I read this headline today.... I thought --- Well.... there's a fundamental change. I wonder how many people have stock in this old line company and they've owned it for 40 or 50 years... and it's possible it goes to zero.

My mother worked at Sears. I used to buy all my tools at Sears. Need a battery? Head for Sears. Need work clothes? Yep - straight to Sears. I remember as a little kid being excited because Grandma would let us go thru the Sears catalog and pick out (scribble? Circle?) everything we wanted for Xmas. I can still picture the pages and pages of the tools... you could buy the 25 pc set or the 1744 pc set complete with tool box. Man I remember dreaming over that bad boy. I still own the very first 3 drawer Craftsman box I bought when I was 13. It holds all my TIG consumables... and it's a little worse for wear... but that box still functions.

Here's my thought for the day. There's winners and losers. There's always going to be winners and losers. Certain parts of town that we remember as the shinning are now places we won't even drive near. Businesses that stumbled and lost their way... Monkey Wards... Sears.... Radio Shack.... Best Buy was almost gone... And there's winners... Amazon? Costco? Many specialty retailers have sprung up that all took a bite out of the "Sears" model. Things change. Be aware of these for investing... you want to be out of the loser and into the winners. Simple changes can power your retirement. Chipotle Mexican Grill vs McDonalds. Is this a fundamental change that lasts? I don't know and I'm not trying to use this post to make a pic one (won?) way or the other... rather I'm saying -- be aware of little changes that begin to add up and affect what you're currently invested in. Look at your investments one by one and examine them and pull your head up and look around you. News? Have you asked yourself - if you were an investor in Sears - when was the last time you shopped there? McDonalds? Did you used to go there once a week and now haven't been for... What? You can't even remember the last time? Is that worthy of paying attention to? Hell yes.

Have your shopping habits changed over the last 20 years? Amazon over Sears? Investing is pretty simple. But you do need to pay attention. Don't be caught owning the crumbling house in the bad side of town just because you were born there.... If the west side is the best side... recognize that and pack your stuff and move. In investing - don't be hidebound. Don't turn in to Grandpa that still holds Sears stock and has no idea that they're maybe the next Monkey Wards.


Just thought of another name that used to be THE STANDARD.... SONY? Used to covet a Sony TV... when was the last time you bought or even looked at - anything made by Sony?