I'm buying based on a hoped-for runway. But I don't know that it's so. If, as the business improves as expected, the stock should move up with plenty of time to add more to position. Otoh, these no-earnings-speculative things can fall with the market or just with rumors or one disappointing announcement. I've no confidence with such that the stock will come back into favor. For me, I'd rather limit my losses (having small initial buys) than capture larger gains (should things go well) with one big buy.
And something else. If I initially take a large position, and the stock does well, that changes the nature of the situation in that, now I have to begin to consider if or when I want to sell and take profits. If I buy small positions on the way up, knowing that I'll be doing that, the sell consideration is diminished for me. Of course, if the stock begins to decline, I see that I've lost money on the recent buys, but maybe overall I'm still ok, and can exit the stock.
I suspect lots of investors/speculators, maybe most, are once-and-done with their buy decisions, and that may be the best way, but that is not me. |
