I don t need earnings to be a successful and satisfied investor. I don t need dividends, innovative products or even competent management. Companies need not be green or trade at low valuations. If those factors matter -- whatever factors matter -- will be reflected in a security s rising price (assuming a long position).

Therefore I make very little demands on positions in my portfolio. Holdings simply need to show me they love me, to perform, to demonstrate the trend I m anticipating is, in fact, underway.

So opine on the prospect for a full recovery or double dip if you d like. Just don t manage money based on how you feel but on how the securities themselves behave. Rather than clutching a dogmatic macro theme ( the U.S. economy will recover, unemployment is set to soar ), I focus on price. That s ultimately all that matters.

With existing positions, forget the flashy annual report. What inspires my affection (and continued investment dollars) is when a loss flips to a gain or when a previously lethargic holding moves to new multimonth highs. Our emotions lead us to mistakenly dump previously held positions just as they start to perform, but more often than not, those are assets you ll actually want to preserve and expand.

I m encouraged by a stock like NTT DoCoMo, a long-held name that has just recently moved back above my initial purchase price. Along with strength in other telecom names, that profit, however puny, is a much more influential indicator to me than an analyst recommendation or positive message board buzz.

Ai shiteru

DCM 2 years

For new ideas, like Hungary s Magyar Telekom, I ll take an initial position and immediately put the onus on the security itself. Show me you love me. Growth or value, foreign or domestic, the asset doesn t matter: How it's acting does.

If XYZ at $50 is going to rise to $65 it s going to have to start by rising to $57 first. That s the sort of confirmation I wait to see before actually getting into bed.

At the time of writing, Hoenig s fund held positions in many of the securities mentioned.