<<<<So I sold some of my DELL (I still have several thousands of DELL), and put them into AMZN. Before I sold my DELL, I asked some advice in this thread, but most of them are simply too stubborn DELL heads, refuse to acknowledge DELL's underperformance. I sold anyhow and I just got lucky. B.J.>>>>
Congratulations on the Amzn. No one here will object to your doing what is needed to 'come out ahead of the game' and no one has the perfect method of doing so. Analyzing and improving your own past performance is a worthwhile effort.
But am glad you kept some Dell. Dell has come from a nobody
to the top of the heap, competing for #1, but if you read every post from 1996 on, nobody has even come close to predicting Dell stock performance. Today we work with the same type of figures, P/E's, same analysts and evaluators, same comparative companies, same bearish
predictions. Yet IMO, gurus and mystics are still going to be closer
than the cold analysis.
We are only half-kidding when saying never sell Dell because that depends on ones goals. Some day I will sell some Dell when the time is right, and that is not now. I have other stocks, bought with money made (mostly) on Dell leaps.
But I always try to maintain or increase Dell holdings thru buying additional cheaper calls or Leaps.
Here's the reason.
In 1995 I had about 500 shares of Dell. Regrettably,I sold ~ 300 to buy materials to build a house.
That left me on Jan 6 1997,with 200 Dell shares,about $41k invested, with a profit of $6,800, and a retirement income around $1100/mo.
At the end of 1997, I had 700 Dell worth about $65k, with a profit of $33k.
So I essentially missed all of 1996, which somebody said was an outstanding year for gains.
So far this is small potatoes except to myself, when the $33k
was worth over twice what my other income was.
Now 1998 looks like this:
Jan 30 600 Dell (I sold 100 and bought some calls)
Apr 1 1240 Dell
Sep 2 1790 Dell
Oct 2 3900 Dell
Nov 2 4030 Dell
Dec 1 4050 Dell + a considerable number of Calls and leaps (and some Amzn)Hehe
I don't clearly know where I got the money to do that, would have to review two years of records to find out exactly, I think it mostly came from buying calls and leaps and using some margin.
But the reason it happened was to remain focused (see MD comments(G))and Kembles posts) on accumulating Dell stock.
%^ll, I worked a lifetime to own a home free and clear,
now when Dell goes up or down I might lose one (on paper)
in 30 minutes. Its no problem, until I lose three or four that
way, in which case I discuss it with Jan, and she tells me never to sell Dell(Hahahahahahahahaha). She never lets me touch the shares she has in the attic anyway(G)
I am most impressed with the fortunes that can be made or lost in Web stocks today and try to participate in a small manner. I did not see any opportunities in the market ten years ago( or even 5) for that to happen.
Good luck
Sig
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