Investing 102

[GregWeld]

I haven't posted much lately -- mostly - because the thread just gets longer and longer --- but there really isn't much "new" to add to the thought process that is BASIC investing. Basic investing is so simple. You save some money - buy some shares in a great company that pays a dividend... add to the pile as you can.

So having said that -- I always have "cash" that isn't doing anything. Don't ask me why... because I have no answer. I just like a margin of cash that is ready for "whatever". We're not talking about $500 either... so it's really dumb.

Summer is a time when the market typically just drips AWAY day after day. People get busy with vacations... there's not much news... and the market just takes a break. So - knowing that... This is when I usually look to pick away at adding a name or adding to a position. But -- always the big butt -- like everyone else... I'm on the fence watching the affect that a FED rate hike will look like. Do we get crushed (temporarily)? Does the market shrug it off? Is the signal from the FED that the economy is doing well - so the market should be good because business is good (that is the bottom line after all)?

The other thing that runs thru your (and mine) head is always -- is the market overvalued (too high) and I should wait for a big pullback?? So having said that -- I want you to pull up a 5 year chart of BlackRock (BLK).... this is a rhetorical question... at what point in the last five years would that chart (if you did NOT have this historical look now) tell you it's overvalued and to wait for a buy? LOL

Thus my post today... HOPEFULLY this thread - if it's done nothing else - has taught you to take a far longer term approach to your investing. Are we investing for what might happen 6 months from now - or are we investing for 20 YEARS from now??