I Put My Money Where My Mouth Is
As you might know (well, at least those very careful readers might—those who keep tabs on my portfolio without my needing to shine a light on it), I decided to avoid one of the things I often dislike about many commentators who write about the stock market: they can talk all day long but you’ll never know if they have the stomach to eat what they say you should eat. In other words, a few days ago, after telling you that something looked particularly appetizing, I went out to eat. After saying that Citigroup looked like a strong buy I went ahead and bought some. Part of the problem with talking the talk when one then doesn’t walk the walk is completely justifiable: sometimes there are more great stocks available then there is money to spend on them. But even still, I couldn’t pass up the opportunity to show in the best way possible just how much I meant what I said.
So guess what? I meant what I said. The only remaining risks I see are the high probability that they will have another major write down and the somewhat smaller probability that they could reduce their dividend to save cash. If either or both of these occur, I think the stock could slide some more, but I do have some serious doubts that it could fall by many margins more. My approach then is going to be one of slow and steady accumulation; however, during this accumulation I hope to continue to grow my cash reserve so that in the event that they do slide some more, I can enter a fairly serious position.
I better be off for now, I’ve got to find some way to rid my tongue of that inconceivable taste of cash.