You are so very welcome as I'm sure you know..
Moments ago I got off the phone with an Ameritrade broker. I'd called owing to a slight discrepancy in the portfolio numbers I recorded last night in my weekly tally and those depicted on the computer this morning. Our conversation was engaging to say the least.
We discussed the importance of the investor's recognition of the two all-important components that must be present for large gains:
1. Intellect
2. Instincts
The broker pulled up my December 31st 2015 balances for each of the four portfolios and then compared them to yesterday's closing balances for 2016.
He was shocked and immediately wanted to know "the story."
We must have talked close to an hour. Having someone as knowledgeable as he in an oversight role can be uplifting. It was!
The process of constructing portfolios destined to demonstrate continuingly meaningful growth CAN BE incredibly exciting. It most certainly is, for me. Part of this process carries an acute awareness of the presence of risk. Without this, we'd be placing ourselves at the mercy of luck, thereby reducing ourselves to mere gamblers which is to say that we engage in playing a numbers game.
That would be intolerable for me as two of the portfolios I manage are my wife's IRAs---a regular and a Roth. Her welfare, should I precede her, is partly dependent upon my ability and determination to securitize her through portfolio gains versus losses.
My IRA is different in that I never built it up except minimally as I'd expected to be managing individual stocks. So it's little, dollar-wise. But today it offers a glimpse into the person managing its content (stocks) and a standard of excellence---or failure---in evidence as manifested in the operating results of the year.
And then there's the primary general (nonretirement type) account. This is the one where most of my ALDW holdings will be found. This account reflects a far greater flamboyant investment style than most people would find acceptable.
The year has been a dazzling one. But the story doesn't end with the final tally recorded yesterday. No, the story is just beginning.
For much of the year I've urged others to at least consider certain stock picks I believe are worthy of consideration. I don't want to be the last guy standing, making gobs of money while others go wanting and feel less than successful. It doesn't have to be that way but, of course, it's not for me to bend anybody's elbow. Yet it truly pains me, seeing inordinate gains pile up in my portfolios while others may be missing out on easy pickings.
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As for yesterday's drop in ALDW? Something told me to expect a 40 cent drop. I maintain a ledger accounting for day-to-day fluctuations in both ALDW and NGL. Each Friday evening I look at what the week has wrought. In the case of ALDW, we closed last night at ALDW's price from a couple of weeks ago (12/16/16). Is that bad? Not in my opinion as I'm still well ahead and very convinced of valuations that lie ahead. This drop in value is the crouching before the leap higher.
NGL, on the other hand, stood at $19.15 on that same day---Dec. 16,2016.
What we have, then, is ALDW standing pat while NGL rose 9.7%. Nice.
But far more meaningful to me is that the path is being plotted right this moment. And I hope others are picking up on it.....
ALDW has been perched higher than its last close. It got there on its own merits. It dropped, not as a consequence of corporate failure but due to trading. More than likely, much of the activity came as a result of investors/traders locking in gains by taking them off the table. And then there were those who smelled decaying exuberance and figure they'd sell now and repurchase at lower valuation only to rebuild their prospects. Smart!
Either way, it's obvious that ALDW is going to get right back to where it had been and then some. Now, some will say, "How can you be so sure?" My personal take is that we know it will return and exceed because of company-led performance over its history, the value of its model, its business plan, its practice of rewarding "partners" with their retail positions. And then there's the Trump/Icahn/Perry triumvirate pledging to bring about EPA changes in an effort to restore viability to our refiners.
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We have almost unheard-of opportunity perched right now at our doorsteps. Some will hear the knock on the door and respond. Others will, no doubt, jiggle the "Do Not Disturb!!!" sign and go back to counting z's.
If you're expressing gratitude, then you're counting gains. YOU, ALONE, should take credit for that. I'm so pleased to be of assistance but that's the only pleasure I crave. Far more important to me is that we teach as we can so that others can benefit and carry on the responsibilities associated with success.
Thank you for speaking up as you have. You are appreciated!
