This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Why I'm Buying in China

If you want to buy low and sell high, here's idea No. 1. Jade Art Group (JADA) is off 92% from where it opened in January. Then, I wasn't interested because I had other, more inexpensive companies on my plate. Now, I'm a fan --- especially because the company deals with raw jade, and I consider this a luxury good. When good companies get cheap, I get greedy.

If you want a couple ideas to compare this to, look at Fuqi International (FUQI), Zale (ZLC), Blue Nile (NILE) and LJ International (JADE).

Fuqi is up over 300% in the last three months. What was once a cheap, good company is slowly but surely becoming more reasonably priced. We aren't there yet, but we are getting there. LJ International is more likely to go up than down in my opinion, as well.

In time, investors are likely to become more certain than uncertain, and companies that make wise decisions are more likely to continue to exist through tough times than those that do not. If you follow the sentiment of the headlines, you'll likely be buying high and selling low. Nobody really knows everything, but everyone is willing to tell you what they think if you ask.

If you entrust others to do your homework for you, how do you expect to beat them? Listen to those who beat the market and question everything all the time. Read what they say, not the headlines. Warren Buffett in his "Buy American. I Am" piece was on the same page I was. U.S. Treasuries were overbought. U.S. stocks were cheaper than they had been in a long time. He was speculating that at that point in time, stocks were a better investment than Treasuries.

Misunderstanding driving directions could land you in an entirely different destination and out of gas. Misunderstanding investment legends is no different. I would speculate that he was not saying that American stocks were the best investment at the time, just comparatively better.

He's also been quoted as saying: "The 19th century belonged to England, the 20th century belonged to the U.S., and the 21st century belongs to China. Invest accordingly." And so, that's what I'm doing.

Glen Bradford owns Jade Art Group. Bradford is a Purdue Industrial Engineer pursuing his MBA and trading his entire tuition in the stock market as well as the tuition of his roommate. His life goals are to efficiently allocate capital: mental, physical, financial, emotional.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs