>>i can buy 1200 shares of Q or aprox. 3500 shares of gmst.<<
Thanks for sharing your story with us. I know several consolidator stocks that seemed like great ideas, and then their prices crashed. One, with a similar pattern to the one you described, is ABTX. They fell from around $29 last year to about $3. Not pretty.
We here believe that G&K investing will avoid such disasters, but we also know that severe drops in prices are part of the gorilla game as well. Perceived delays or missteps by the companies, tech corrections and bear markets do happen. The key is using a LTB&H approach and sticking with it.
The decision as to where you invest your new money is effected by what you already own and by how comfortable you feel with a concentrated portfolio. Several here are 100% QCOM and they have done fabulously. QCOM will most likely continue to be a leading stock, but one of these days the stock price will take a rest.
The author of the "Getting Started" column in the WSJ wrote the other day that he no longer advocates 100% stock portfolios, suggesting that a small portion be kept in bonds or moneymarket funds. I found his reasoning interesting. He admitted that long term results would be lessened, but he said he had sadly learned that most investors do not have the fortitude to stick with their investments when prices fall, often yielding to the incredible pressure to do something - often getting out at precisely the wrong time. Having other holdings might lessen the falls and would also provide a pool of funds from which to draw to buy on weakness. The ability to do such buying, he felt, would sate the desire to just do something.
Just perhaps, a correlation for us here is the 100% investment in one stock. It is wonderful on the way up, but the corrections can be rough - especially when they last for more than a few days.
Studies have shown that people in loosing positions tend to take greater risks in the hope of getting even more quickly. I don't know which stocks are right for you, and this is just MHO, but I would suggest a little diversification. There are many good stocks discussed, and monitored here.
StockHawk |
