Tuesday, January 26, 2010

Are You Letting Feelings Color Your Investment Choices?

Have you read that its a good idea to buy the stock of companies you know and respect?  Companies whose products you use?  While there is some truth in those thoughts, sometimes the best thing is to coldly look at where the money is to be made, hold you nose, and buy companies you hate.

Case in point:  Here are the returns for some of the largest stocks in America for the ten year period ending 12/31/09:

Dell:      -71%
Home Depot:  -57%
Coca Cola:   -2%

Altria (the new name of the cigarette company Philip Morris):   +269%

Ironic and interesting, eh?

That's all for now.  Smoke 'em if you got 'em......

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