Earlier today I did something that might be unwise, or maybe it's just genius. It all starts with what I did yesteday (Thursday).
On Thursday, when the stock market was falling, I sold all 25 shares of Apple in my account. The stock's price went down further, and I bought it back when it was on the way back up- for about 3 dollars less than what I sold it for earlier in the day. Did I make much money? Not really.
Then came today (Friday). When I looked at the market in the morning, I saw that my stocks were falling again, only slightly. I kind of panicked, and sold all the Apple stock again. Later on, after thinking about it, I thought that I'd done kind of a stupid thing. I thought about buying back all 25 shares again, but then I stopped myself. Why not simply buy back 10 shares, and then stand back, and see what happens. I figured, if Apple stock goes down after I buy these 10, then I will have extra money to buy the other 15 that I want for cheaper. And if Apple goes up way past the price I bought these 10 at, then fine- I'll just buy a cheaper stock that I believe in, like Disney (which, by the way, is going to pay a dividend of 31 cents really soon for every share you own). Either way, I'd be happy, because I want to own these stocks for the long-term.
Well, what happened today in the market after I bought the 10 shares of Apple? It went down, by over 10 dollars per share for the day, and about 6 dollars per share below the price that I paid for the 10 shares. How do I feel? Well, it's like I said- if it goes down, I have money to buy more stock, for cheaper.
Apple and Google are the two hottest stocks that you can own right now. No matter how crazy the economy is, or how much less the U.S.Dollar is compared to the Euro and the Canadian Dollar, Google and Apple are making money worldwide- all kinds of money- and the profits of both companies are going to be phenomenal. Google says that they are never going to split their stock- so- imagine if someday their stock is priced like Berkshire Hathaway- you would be one rich Mo Fo, even if you only have one share! I had 2 shares of Google until today. Now I have 3 shares!!!!
Now, a disclaimer- when I say that I have the stocks, they are all really my Mom's. I trade on her account.