Read, Think, Prosper

I had a couple of stark reminders why most individual investors underperform the market this week. One of the sales guys at Benzinga has been chatting with folk who didn’t renew their Banking on Profits service to see why not. The general consensus was that I was sending too much information and not enough actionable ideas. For those of you who don’t subscribe each week I send out commentary about the markets, economy and banking industry along with a buy list. That’s simply those stocks in the portfolio that are still cheap enough to buy at current prices. There no technical level or any of that. The list doesn’t change much week to week and we tend to hold the stocks for a very long time. Most of our exits are the result of a takeover offer.

We are beating the pants off the overall market but we don’t trade enough for most folks. They want the action, the chart points, the in and out and whip around. I don’t do that. I never will. It doesn’t work for most individuals and to think that you can take on professional full time traders and win requires the same arrogance to think that you and 8 buddies can take on an MLB All-Star team in baseball and give them a run for their money. Now, you and 8 of your buddies from work may be able to beat their pants off in Trivial Pursuit of Pictionary so if you are going to play them in a game, you play the one where you have the advantage. That’s what focusing on deep value and community bank stock investing accomplishes. We have the time and size advantage that gives us the opportunity to win. The ...

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Click Bait, Nonsense and the Liquidity Myth

The madness started yesterday as the first to what will be endless articles about which industries and stocks will do best under Trump or Hillary was published. It is a stupid game that is played at your own peril. The ...

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Grow or Die in Dallas

I just returned from the Bank Director Grow the Bank Conference in Dallas and I have to say it was one of the more interesting meetings I have attended this year. This conference covered everything from the 30,000 foot ...

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Big Numbers at a Big Discount

May is a busy month around Chez Melvin. We have my birthday to kick off the month, The Berkshire Hathaway meeting, the Kentucky Derby, The Preakness, The Indy 500, baseball, my oldest kids birthdays and Memorial Day are also in ...

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The Fed, Cyber Thieves and Sticking with What Works

I was asked yesterday how I was faring during all the recent market craziness. I have ot confess I wasn’t really aware the markets had been crazy. I knew my screens were not showing anything new but I have ...

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Bankers, Grave Dancers, Politicians and Beaches

Some weeks it is a bit tricky to come up with ideas for one more article every Thursday afternoon. Other weeks there is so much going on in the world this little epistle pretty much writes itself. This week is ...

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Doom,Gloom and Champagne

There were several key conference this week where business leaders, investors and big thinkers shared their ideas and thoughts on the world today. The one getting the most coverage is the Ira Sohn conference in New York were major investors ...

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Rainwater, Banks and REITs

There is a quote from Richard Rainwater that has floated around the internet the past few weeks. Rainwater once said “Most people invest and then sit around worrying what the next blowup will be, I do the opposite. I wait ...

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Rainwater, Banks and REITs

There is a quote from Richard Rainwater that has floated around the internet the past few weeks. Rainwater once said “Most people invest and then sit around worrying what the next blowup will be, I do the opposite. I wait ...

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Trade of the Decade Update,First Place and Good Times

Earlier this week I released my video presentation on the State of Banking: Trade of the Decade update. It is on my YouTube channel if you want to check it out but I also want to rehash it in print ...

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Activists, Baseball and Merle

I was taken to task recently by a reader and subscriber over my constant use of the Stern Agee study on activists and community bank stocks. I use it all the time most recently in a Real Money article on ...

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Junkies, Economists and Teddy Bears

Another week, another rise for the stock market. The big news this week is the Janet Yellen Speech. The Nationals- Cardinals game I planned to watch at that time was rained out so I went with the traditional fed speak ...

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