We have been investing in the stock market for over thirty years.
Our portfolio is diversified. We hold individual stocks, CDs, bonds, and an array of mutual funds. Our biggest holding is Apple which we started buying back in 1990.
Our philosophy has been to invest in solid, brand-name companies that manufacture products we understand. A few of the companies we own are: Boeing, Baxter, Caterpillar, Disney, Google, Amazon, Chevron, Pfizer, UPS, Eli Lilly, Burberry, Hermes, Tiffany, and Elbit.
One of our favorite buys. An Israeli company that manufactures, among other weapon systems, drones. I love Elbit because I get to support the Israeli economy, kill IslamoNazis, and make some money.
We stay away from international stocks. Europe is a tangle of regressive Socialism, hopeless. South America is corrupt. Japan is, well, not exactly taking over the world as was predicted back in the 90s. And no one knows what a Chinese company is really worth.
We stick with American, Canadian, and Israeli stocks.
We are not nimble traders.
We follow one simple rule: The market rewards patience over genius.
Thus, we invest in companies and tend to hold that stock for many years. We also favor companies that offer a nice yield. Over time, those few dollars add up.
There is nothing so powerful as compounding interest.
The crash of 2008 induced some sleepless nights. But based on history, we did not panic, did not sell. In fact, we looked at that crash as an opportunity to snap up some bargains.
The current downturn is, in our humble opinion, a correction. This is nothing like 2008 where the government-induced housing bubble collapsed and major institutions were bankrupt.
This is, mostly, a Chinese hiccup.
It’s also another opportunity for smart investors. On Monday, Seraphic Secret sold a bunch of low-yield CDs and bought more Apple for the bargain price of 103.
Our stock market prediction is this: The markets will continue to fluctuate.