In Texas, on Highway 7 between Center and and Nacogdoches there is a farm. The Lily Farm.
I went there one weekend before Mothers Day. The idea, “Why buy something that we be, and then be gone, when I can buy something that will last and last. (And I can get a bulb off of later.)”
I needed two bulbs. They gave me 8 flags and pointed by toward the 20 dollar rows. These were shade shelters about 2 foot ball fields long and about 60 feet wide. Each has central path wide enough for a couple of golf carts to pass and short rows of lilies radiating from the central path.
I was instructed to place my flags on the lilies I liked, then go back through and remove 4 flags. Then go back and remove 2 more. The last flags standing would be the ones that I purchased.
For all practical purposes, this was an exercise in relative value. I had a budget, I had to choose what I considered the most valuable. It forced me to choose.
I believe that being 100 percent invested 100 percent of the time IS the secret to Saul’s method. This because Saul’s method is a continuous process of deciding relative value. You simply cannot find relative value if you are trying to gauge against too many things. I can’t stand in the Lily Farm and still contemplate how the lilies I am looking at stack up against the cut flowers at Walmart. If I am going to make a relative value judgement, I have to have first made the judgement that I am there to buy.
I have not implemented Saul’s method, and in fact after studying it more and more, I am thinking of buying an SPX etf and going fishing. As I find my judgement to a poor relative value.
On the other hand, if I do stay involved, and I do attempt to work with Saul’s method, the one thing I will do first is average in and stay 100 percent invested. No cash. Never. I understand that the discipline this imposes is probably the secret sauce.
Qazulight (Never liked flowers until I turned 50)