Wednesday, December 28, 2011
Abusive behavior, hating your stocks; what's love got to do with it?
You have worked hard for the money that you have put into your stock holdings. You have worked hard researching the stocks that you currently hold. Even if you have a stock that is really great and the envy of other investors, it is best that you keep your emotions out of it. You absolutely can not fall in love with a stock. Falling in love can make you act really silly. Lawerence Fishburn does not act silly in the movie, "What's Love Got To Do With It". In his role as Ike Turner he lords over Tina Turner with an uncaring iron fist. "SING THE SONGS LIKE I TOLD YA TO ANNA MAE!" Although that real life story is obviously disturbing, the relationship that Ike has with Tina is a good example of a relationship that you should have with your investments/stocks.
"Do you think you can sing the songs without Ike Anna Mae!?!?!", Ike tells Tina Turner in the movie after one solo performance. We should think crazy and paranoid thoughts about your investment just like Ike thinks them about Tina. It is always good to think about the worst case scenario when it comes to an investment. That way you can always be prepared for the downside.
Ike physically abused Tina Turner horribly, proving for certain that he did not really love Tina. After all who would beat up someone they are married to and supposedly love?!?! Although we can not physically beat up our stocks, we certainly can guard ourselves against loving them. "You just and ugly no talent piece of crap Anna Mae!". I do suggest being verbally abusive to your stocks at least once a week. Yelling at them will help you keep your distance emotionally and help remind you that there are no perfect investments or stocks. No stock has a chart that goes up in a straight line.
"Have some of this delicious cake Anna Mae!", Ike says as he shoves cake into Tina's face in a public diner. Ike knew that public humiliation would ensure that he kept his hate for Tina alive. It is good to publicly humiliate your investment or stock from time to time by comparing it to similar stocks. What do similar stocks margins, multiples, and growth look like? This will keep you from feeling too much love for a particular investment. There are usually similar investments/stocks out there, and sometimes they have even better returns!
When it comes to investing remember, love has nothing to do with it.
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You're being very offensive to all the abused women out there with your last post. You lost a viewer.
ReplyDeleteThanks for you feedback. I disagree that I was offensive to abused women. I don't believe that making a comparison to a bad situation is offensive, esp. when I have pointed out with my past 3 posts that obviously any abusive behavior is not acceptable. The hyperbole is meant to drive home investing principles, not offend.
ReplyDeleteThat being said it is impossible to please everyone and I'm disappointed that you feel that way.