First, let me reflect on my friend's Toyota Celica. It was a used car with a good amount of mileage on it. I must say, the Celica isn't as roomy and practical as a Honda Accord, it doesn't accelerate as fast as a Ford Mustang, and it certainly can't handle corners as quickly as a BMW 3 series. But it doesn't matter. The car was very well-built. On the highway doing some-what-over-the-limit speed, the car was as steady and reliable...well as a Toyota should be. Everytime I open up the throttle, the little Japanese hatchback just bugging for more. No squeaks, no rattles. This little bugger can't outhandle a BMW, but when you grab on to its steering wheel it takes you right where you wanted. This car sure as hell isn't perfect, but for $7k, it is amazing value and after spending 1200 miles with it, I simply adore it.
This car, a 2000-2001 Toyota, also marked the end of an era. It was the last time where Toyota has built something that is cheap, fun and reliable. Toyota has since turned into a generic corporation with numbers/goals to reach every quarters to satisfy the on-going ambition of being the world's largest car maker. No longer does Toyota build "cars". They now build what I call "econbox" or Box with wheels. Every cars in the current Toyota line-up are as boring as your daytime television program. Not to mention Toyota also started cutting corners on the quality of the cars they build. I sat in the new Camry and I just wasn't impress by its interior. And I wasn't the only one. If you browse around for Camry reviews, there are a lot of complains about the new Camry interior fit and finish. And then there is the new Scion brand. Scion isn't about building quality and fun cars, its just another marketing scheme by Toyota. I can go on about how Toyota is no longer the humble Japanese car maker from the 80s that try to enter the U.S. market with quality built cars. But to tie to my point: I would not invest in Toyota at the moment. Sure, it has gained a sure foothold of the U.S. market since the 80s. Sure, it is stealing market shares from the Big 3(2.5). But Toyota is no longer a corporation with personality. No longer does this car maker need to make desirable cars because they already in-still its brands in the consumers' mind. No longer does it need to build a fun car- only need to market another generic car in a diff. brand. And don't even get me started with the Prius. Toyota was the underdog, the new kid on the block, now it's all grown. No longer does it need to be recognized, no longer does it need to be humble. Toyota has forgotten where it came from.
My investing/trading philosophy is very much the same as my philosophy on cars. I like to buy and trade what I understand, what I know. I like companies and cars that provide "value". I like underdogs that struggle to be recognized. And if I didn't make the point already: you are who you are. Your trading/investing style should reflect who you are. For example: I am impatient- hence, I don't look to hold a stock/position for more than a couple months. My style of trading doesn't fit anyone but me (or someone with similar personalities).
Note: In closing out 2007, unless there is some disaster waiting to happen next couple of days, I'm proud to announce that our return has trounced the S&P500. We have met our goal on beating the index with a good amount of cash waiting to be deploy. And we are fortunate to dodge the Credit crunch bullets. 2008, here we come...
Have a Happy Holiday/New Year.
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