Hi, Tom!
Not understanding the use of absolutes to define amounts of cash to be spent purchasing shares or not spent as in when taking other types of actions.
Case in point:
As you know, I've been adding as mercilessly as I could, recognizing EPD is a truly awesome pick paying about 11% annually. There's just one rule I subscribe to---namely I've got to see money-making opportunity without any prayers required.
Not sure here but when you speak to sequential transactions, are you talking about wash rule considerations? I bought a dozen or more times today and I don't worry about the wash rule tax issues as I pay a CPA to take care of my business. I'm here to have fun and I don't want to be bogged down with the CPA's job. I prolly pay more tax, needlessly, but if the trade-off adds spice and fun to my life, I'm fine with that. Just gotta make enuff munney to pay the CPA lol
I like your having sell targets. I don't do that myself but what I do isn't very far from it, either. Today, for example, I was horny for more EPD and pretty much tapped out at the moment. So I sold a bunch of BAC which replenished the cash side of my accounts. I then repurposed the cash moving it into EPD. The net effect, then, is that I churned BAC with its 3% yield, redirecting opportunity towards EPD paying 11%. It's a no-brainer.
The thing I have to wonder about is the setting of presets as in percentages to buy or sell. Times change and account values do as well, obviously. I'm not sure I want to predetermine buy or sell points when so many variables come into the picture. On the other hand, today I sold hundreds of BAC with the divvy coming in this week. And I sold at a smallish profit, too. Selling was clearly called for what with the investigation into international banking institutions. But more important was the opportunity to take advantage of EPD's unwarranted drop knowing full well the company's balance sheet is in fine shape.
Question for you, Tom:
If you buy stock X today, how do you know you'll find acceptable terms of engagement thirty days out should you wish to sell or take profits?
Interested in what you think!
Looking forward.
Len
