When you have a well diversified portfolio, you don’t always need to keep a reserve of cash especially when the dollar isn’t worth as much as it could be or has been in the past. When the dollar isn’t worth a lot compared to other currencies, you don’t make as much money from interest.
Finding a dividend paying stock is a good idea and finding good growth stocks that can pay off big is even better.
With that in mind I bought more shares of EMC two weeks ago because it was just too cheap given the growth. When you find a stock like this that should be trading at a much higher price and everything about the company looks good, you should pull the trigger.
Other stocks like this have been Apple (AAPL), Netflix (NFLX), Marvel (MVL), ACI. All of which I have traded and made money on. The upside of choosing stocks with good growth (10% or more) is the target prices are easy to calculate. It’s harder with small cap companies but it can be done. I don’t like the buy and hold philosophy unless you can backup your hold decision with a good reason. Most people will agree a stock should be profitable when you buy it, not when you sell it. Figuring out the sell price before you buy is critical and will keep you from losing more often than not.
I own shares of Apple, MVL and EMC.
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