Cliff A.,
There is a simple answer for your problem and I don't mean to be glib: Stop having losses by simply buying the right stocks.
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From an old e-mail that I have:
Consider an investor that bought $10,000 worth of each of the three Gorilla stocks, Intel, Microsoft and Cisco. Also line entry showing return for AMD for same period.
In the last 10 yrs, $30,000 appreciated to $7,681,476 for an annually compounded rate of return of 74.11%
AMD's annually compounded rate of return 13.11%
In the last 8 yrs, $30,000 gone to $1,685,635 for an annual compounded rate of return of 65.46%
AMD's annually compounded rate of return 6.21%
In the last 5 yrs, $30,000 gone to $542,025 for an annual compounded rate of return of 78.39%
AMD's annually compounded rate of return 2.97%
In the last 3 yrs, $30,000 gone to $159,591 for an annual compounded rate of return of 74.57%
AMD's annually compounded rate of return 2.18%
In the last year, $30,000 gone to $52,858 for an annual rate of return of 76.19%
AMD's rate of return 3.35%
You no doubt have noticed that the average rate of return for an equal market basket of Intel, Microsoft and Cisco, is in the 70% range for the 10 year time period.
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Life is so simple without losses and the return is good. The problem with JNIC is that a approximately 80% of share holders paid little (10-25 cents per share) or next to nothing for their shares. One wonders how those shares can claim a value of $60 or so per share. Going public is a way to stake out a claim for a lot of shares to a higher price. You and I are the ponds in that game. (Came close to buying as I know somebody that works there).
I noticed your comment:
<<Almost got retired(then came Aug-Oct,1998)>>
I know the pain you went through as my portfolio decreased also to about 30% of its high value. However, getting my act together since that lowly point 18 months ago, my portfolio equity value is now 9 times greater.
Check my profile and good luck. You can make a lot of money just staying with Intel, Microsoft and Cisco. With margin 100% yearly gain is not hard to reach. (92% & 144% portfolio gain for last two years).
Best regards...humble carl |
