After a few years of trying, I finally convinced my brother to start putting together some stock investments for the future. That was a big "get" for me, but even I have been surprised with the energy he's thrown into learning how to do this the right way.
For example, after buying some shares of Microsoft
It was initiated by a conversation he had with his son Zach. Zach, of course, would like to get his hands on a new Xbox 360 for the holiday season -- and even offered to pony up half the cost. But on further reflection, they decided that they wouldn't jump in for the gift-season rush, instead choosing to buy the console upon the later release of Halo 3 -- which is being timed to coincide with Sony's
My bro then got to wondering whether other Halo fans -- and there are a gagillion of those -- might have the same wait-and-see idea, leading to slower-than-expected Xbox sales over the holidays and, perhaps, downward pressure on Microsoft's stock price.
Personally, I don't think most American gamers will exhibit that kind of self-control, and I expect the Xbox 360 to do very well on its pre-Christmas release. Anyone seeking alternate plays in the gaming market ought to view these new console releases as near- and long-term catalysts for related content providers or character licensors such as THQ
But here's what I do like about that "maybe Microsoft will drop" train of thought. My brother's looking at a prospective price drop as an opportunity, not a catastrophe. It shows he's not focused on seeing a short-term rise in the stock's price, but is instead open to the chance to buy good businesses for an even better price. That long-term, value-focused frame of mind tells me that he's already got a leg up on the short-attention-span Street. He's figured out what some investors never get: The willingness to hang on for years, rather than months or quarters, is the Foolish investor's biggest advantage over the Wise.
Upgrade to further Foolishness:
- Is the new Xbox Microsoft's answer to the iPod?
- You'll have your choice of Xbox 360s.
- Check out Microsoft's new clone war.
Electronic Arts, Activision, and Marvel are all among David Gardner's market-beating Motley Fool Stock Advisor picks. Can't decide whether you want to take a peek at our favorite blue chips or see what David and his brother, Tom, have on tap at Stock Advisor? Fear not -- you can get atwo-for-one deal.
Seth Jayson still has no idea why he doesn't own any video-game stocks. At the time of publication, he had positions in no company mentioned here. View his stock holdings and Fool profile here. Fool rules are here.