The Top Ten Reasons You Sold Stocks on March 9th, 2009

It’s a busllshit headline and I won’t really list top 10 reasons. They are a weak tool. David Letterman owns it and they should only be allowed for comedy and sarcasm. WorldWide Pants should sue every blogger using my headline.

But I digress…

I was checking out some price charts tonight after seeing that Black and Decker $bdk was purchased by Stanley Works $swk for a large premium. Black and ‘Freaking’ Decker was $70 in October 2008 and under $20 by march 2009. It will be near $60 on the open tomorrow. That’s a big swing for a bazillion dollar, boring tool company that has a brand name that EVERY American knows. That’s just one of a thousand stories.

I can live with (not forget) this type of miss, because I did not follow the likes of Dick Bove and his ‘Buy of the Century’ CNBC call on Citibank at $22 or so. I can’t forget glaring ‘asshattishness ‘ because I too was watching the Ocatabox a few times on CNBC. It was quite entertaining in a ‘train wreck’ kind of way. It cost me money. I have no one to blame but myself.

It’s exhausting to think about all the missed opportunities if you take investing seriously (I know…I am exhausted). It is exhausting to think people are not in jail for such ludicrous and irresponsible behavior and no NEW leaders in banking are emerging. I do know (hope) they should and likely will.

In hindsight:

It was an epic panic. It was relentless. We wet our pants. We shit the bed.

It was an epic run on the banks. The depression talk got to us.

It was an epic transfer of wealth that may just bury the United States.

No one can truly explain panic while it happens. We only have the benefit of hindsight. I am embarrassed to not be involved in the massive transfer of equity wealth that occurred starting in 2008. I am grateful that I survived financially. I imagine I was panicked about stocks as well, despite me buying and blogging it on March 9th from the Bahamas. Buying Russia and a few other big blunders put the fear of death into me back in 2008. I swung a few times and missed. I sold some stuff near the absolute bottom. I admit it.

I don’t believe any investor was left unscathed or unscarred. It was a horrifying collapse. Time seemed to stand still.

Our leaders are lying to us daily and it is insulting. The truth is being laughed at just SIX months later. Sixty plus percent rallies tend to do that to the negative people in the investing business. At some level it should.

The few that made big coin in the stock market – in an honest way – were those that honored price. They honored their stops on the way down through 2008 and they took their entries on the way up starting in March, 2009.

As exhausting as all the drama has been, it’s exciting to think about all the opportunities ahead in the capital markets for those that can learn to manage this simple discipline.