whateverworks

Days of Our Lives

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Boring. That's the lead-in for an August 10 "Motley Fool" article which mentioned one of my companies, Lincoln Electric (LECO). Lincoln wasn't the main company featured in the article, Applied Industrial Technologies. But at least it was one of the sister-companies mentioned. The main theme was "boring is good". The author, David Lee Smith, said, "First, they turn out basic components of our industrialized economy.... Second, most never capture the attention of those searching for "hot" investment plays. And third, all have recently reported very solid -- record, in some cases -- quarterly results."

That's my kind of investment!

Unfortunately, none of the companies listed in the article (AIT, ITW, B, KDN, RBC, LECO) have remained bear-proof. As of today they've all drifted lower along with the markets, AIT a little less so and LECO a little more so.

Which brings me to another reason for this ho-hum Monday. Over the weekend I looked for a bear-eating category of industry or "better" companies to invest in, truly swimming against the recent falling tide. I couldn't find any that impressed me more than the companies I already have. Although I hate inaction when things are going badly, no purpose is served by incurring meaningless trading fees. If I knew how to "trade" versus "invest", (and if I didn't have a day job) then I'd be looking for stocks which would predictably surge and recede. Even a bear market has rallies; so a trader can do OK buying on the lows, selling on the highs, and repeating the process. But for myself today is just another morning.

Every day, I scan my companies' headlines, making sure none have been hit with a lawsuit or awakened to find a top officer absconded with all the money. Nothing scandalous has happened so far. There are days when the best thing you can do is wait.