This is a good article on investing mistakes. He mentions the Vanguard Total Stock Market Index (VTSMX) fund we just bought into based on Clarke Howard’s advice.

12-Mistakes Part 1

12-Mistakes Part 2

Like Ted, we bought Delta, too. This article explains how stockholders who bought prior to K-Mart’s bankruptcy lost everything. Those who bought into the new company (K-Mart Holding Company) have done quite well. Hope those Delta pilots give in before Delta has to declare bankruptcy.

Kmart’s investors gather as stock soars – 05/25/04

I thought the risk was the company would fold, not realizing the stock could just be “cancelled” and the company come back with a new set of stockholders. Think I’ll just bury our money in a box out back.

Good refiinance calculator. It calculates the two key things you need to know: How much you save monthly, and how much interest you will pay from this point on with the new loan vs. the current loan.

Going to a 4.75% loan (no closing costs… it’s built into the rate) we will save $180 per month and pay $16,000 less in interest. With Wells Fargo, it is all done by mail.

Now listening to… Simonize from the album “Music For The Morning After” by Pete Yorn

Market Timing is way too complicated and no fun. Investing should be entertaining, not just about money. Whether you are buying a house and fixing it up, raising kids, starting a company, or owning shares, if it interests you then you are guaranteed a return on entertainment (ROE), even if you don’t get an ROI.

It also means you get to know your investments over time and can be smarter than the market who doesn’t know the investment. (I’m smarter about kids than I’ve ever been!)

My current strategy is to invest in known brands that fluctuate. I buy when they are artificially low (usually because of something in the news), and I know they can go up. I sell somewhere on the way up when I make 35% or more. I don’t worry about short or long term. I don’t try to get greedy and make more than 50% (anymore.)

I only invest in companies that I continuously read about and preferably experience their products as a consumer. This has worked for me with Intuit, Apple, ETrade, and Dell. I hope it is going to work with Microsoft and Home Depot. It did not work very well with 3COM who just melted down. I got out when the bad news stayed bad. I did not lose much because I only try to buy low.

What I’m banking on is that these stocks have more volatility because they are well known brands who create a lot of news which the media overhypes (in both directions.) Because so many consumers are directly investing now the market is more easily influenced by the hype.

“I can’t figure out what is going on with the market,” one of our board of directors told us in a meeting. “Prices go up and down when it doesn’t make sense.”

I’m banking on that, and so far it has worked pretty well.