Reading the posts lately reminds me of how many different kinds of investors contribute this thread. Traders, shorts, long-termers, gamblers, day-traders, wishful thinkers, and even people who specialize in Canadian penny stocks. What's fascinating is that, if one believes the posts, we all make money. Equally fascinating is how we all believe we have the 'best' strategy and we're all eager that everyone else adopt our views.
I view my Microsoft shares as my small part of a business. My business makes software. My business has good days and bad, and the price of my business varies daily. I have a long investment horizon and patience. Maybe Microsoft shares will trade at $120 this winter. Maybe we won't see $120 until summer. As long as Microsoft expands their profits long-term, we'll see higher stock prices long-term. For a $120 share price: If's a certainty, when's not.
I don't like a high PE because they leave little room for error. In 1989 when I bought Microsoft, the PE was below 20, which seemed high at the time. I was lucky.
Cheers, PW.
P.S. Relying on luck is a poor investment strategy. |
