Portfolio management: trade to lower cost

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Buy and hold, long term investing? I hold CROX from $75 to $20, hoping for a rebounce. It never came. Sometimes we got to trade stocks to take advantage of price volatility (up and downs). I was successful on this aspect from time to time, especially since the stock rally started this March. I made some money back from NRG Energy (NYSE:NRG) and Huntsman (NYSE:HUN), to cover the loss from holding Berkshire Hathaway (BRK.B). Here again the lesson of “buy and hold”, even for a good company like Berkshire, I bought it at wrong time (April, May 2008).

BRK.B Berkshire Hathaway Inc. Buy Apr 9, 2008 1.00 4,349.89 7.00
BRK.B Berkshire Hathaway Inc. Buy May 12, 2008 1.00 4,130.00 7.00
BRK.B Berkshire Hathaway Inc. Sell Mar 23, 2009 1.00 2,894.25 7.00
BRK.B Berkshire Hathaway Inc. Sell Mar 26, 2009 1.00 2,939.51 7.00

Pros and Cons of low cost trading: Sogotrade

Master Series

Buffett lost his touch?

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Berkshire Hathaway, a.k.a, Warren Buffett’s diversified holding company, reported a not-so-good quarter Friday after market close. Here are the results.

BRK berkshire 3Q 2008 pic
(full size pic here)

On the surface the result is not good. But I think the loss from derivatives is on the paper and will be temporary.

What do we learn from Buffett
Discipline, discipline, discipline (see the definition at Wesbster Dictionary). There is a new book about Buffett came out lately. Here is the link to Amazon. If you like, you can also help me out buying from my Amazon store. But this is not my point. My point is, among many attributes that contribute to the success of Oracle of Omaha, discicpline is probablly the most important.

Jason Zweig wrote an article about the secret behind Buffett’s success on WSJ. Here is the Chinese translation.

Buffett pretender award