The solution, of course, is to trade less. Buy into good, well-researched companies and then wait. Let’s call it a sit-on-your-hands investment strategy. Here are hand-sitters for consideration.
Britain’s HSBC Holdings (HBC)(54) has few rivals when it comes to providing broad, global financial services to small and midsize businesses. It trades at 15 times trailing earnings, 1.2 times book value and 4 times cash flow, with a 3.7% dividend yield.
Apple (NASDAQ:AAPL)(461) is no longer beyond criticism. I like that. The world’s largest stock, it has a P/E of ten and sells for 3.3 times book value and 7.4 times cash flow. Its dividend yield is 1.8%. It’s a bargain among megacap tech stocks like IBM, Google, Oracle and Microsoft, and it’s a bargain among megacap consumer stocks like Amazon.com, Comcast, Disney and Nestle. Use Wall Street’s hypercritical mood toward Apple as a buying opportunity.