Thursday, March 20, 2008

A Conversation with a Long-Term Investor Part 2

(Later at the gathering, I encounter my new Long-Term Trading friend again.)

Him: Hey Barlow, you really got me thinking when we spoke last.

Me: Look, I trade for a living and have been for 25 years. I don’t really want to talk about trading. What do you do for a living?

Him: I have a used car lot. I sell cars.

Me: Interesting. Do you buy and sell cars on time too… like your stock strategy?

Him: (felling silly and smiling) No, actually I don’t, and stop mocking me.

Me: Sorry, I really didn’t think you bought cars on Monday and sold them on Friday. I was teasing.

Him: Of course not. Twice a month, I go to the auction and pick up some cars that I think are undervalued and I leave them on my lot waiting for someone to pay even more than what they are worth.

Me: So, you buy low and sell high. You look for cars undervalued and sell overvalued. That is what I do when I trade stocks. So we are the same… we just trade different things, but employ the same strategy.

Him: Interesting, I never thought of it that way.

Me: I did.

Him: You put things differently than my broker does. Would you like to have lunch Monday? I enjoy talking with you. I’ll buy.

Me: I would love to. Maybe you can help me. My son is looking for a new-used car.

Him: Great! Monday it is. I will call you.

(Monday, I will post the conversation at lunch)

No comments: