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Investment Lessons From 'The Walking Dead' - WSJ


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1) Don’t toy with zombies, kid.

Relevant market analogy: “A lot of companies are like zombies that are stuck in the mud, they’re moving but the lights aren’t really on,” said Schwinghamer, who’s also author of the book Purple Chips. “These are companies that keep diluting earnings, are top-line oriented and don’t do any favors for investors.”

2) Don’t wait for a bad idea to get good.

Relevant market analogy: Schwinghamer pointed to BlackBerry as BBRY +1.30% a prime example of a company that has burned investors waiting for it to turn around. “BlackBerry is a great zombie candidate,” he said. The company good days are behind, but “somehow (investors) believe this company is going to turn around. It’s not going to happen.”

3) Don’t trust smooth talkers. 

Relevant market analogy: “All too often we are making investment choices based on a very charismatic presentation,” O’Shaughnessy said. There are strategies that look good over a short time-frame that falter in the long run, he said. “In the hands of a charismatic man, he can make a lot of hay with them.”

4) Never follow a guy who’s got a bayonet where his right hand used to be into the tombs because “Rick said” he wanted them cleared out.

Actually, this one may not have any relevance to investors. Still, “I’ve never trusted anyone that I’ve met with a bayonet prosthetic,” Schwinghamer said.

5) Luck helps sometimes, but smarts are more reliable.

Relevant market analogy: Pier 1. Who didn’t think this stock was doomed? Investors who stuck with this company when it seemed doomed have been paid for their bet.

Cute article but individuals should not be picking individual stocks.

Invest in index funds and move on with your life.

That's the real lesson of The Walking Dead. Don't waste your time.

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