Saturday, November 3, 2012

Are you the investor also the owner of the business

It cannot be to me. If I have 20 stocks, I do not have the time to run 20 businesses. I do not have to hire, fire, plan... I do not put most of my eggs on a business as most business owners do. It is just saying to a policeman or a fire fighter I pay your salary. It is only true for your ego and nothing more.

Who are the owners that will affect the companies' strategies? Not you as a retail investor, but the big mutual funds, pension funds... and then the insiders who usually suggest how you should vote.

I ignore all these vote requests as I usually have about a hundred of stocks (less today). I do not even have time to read all their suggestions.

To illustrate, the hedge fund who owns most of Sears shares pretty much make the decisions. I made money on Sear not by keeping Sear as a company, but trading the Sear stock.


The decision to trade a stock for me is the potential appreciation of its stock price (via many researches by others). I trade the company by a click of the button, and there is no emotion attached to the button as I'm not the owner but a investor.

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