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Strategies & Market Trends : Buffettology

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To: Shane M who wrote (2504)6/2/2000 9:37:00 PM
From: Freedom Fighter  Read Replies (3) of 4690
 
Shane,

>>Some, especially thinly traded issues, just seem to sit like a rock then come to life and find a new plateau in the course of an upredictable week or two. Some of these I never know what really makes the stock move. It just happens on no real news or change in the business.<<

I'm sitting on 2 stocks like that right now. Their earnings keep exceeding my expectations, I'm fairly certain about the values because the companies are rather simple, yet they just sit there day after day. I'm fairly certain that if they were blue chip types or part of the S&P500 they would be rallying like crazy on the earnings news and sales growth that has occurred. The reason it has tested my patience a little is that I have bypassed several very marginal blue chip values that immediately rallied back because I preferred to be in the huge value. So far that means it has cost me money. If I can buy a stock that rallies 30% in a few months and then put the proceeds into another stock that rallies 30% in a few months that can work out better than sitting on one that takes forever to realize a greater spread between its price and value. That's why I asked the question about the time it takes on average to realize the value based on other investors' experience.

I'm new to the small cap/thinly traded stock game. I'm wondering if there are any lessons to be learned here other than patience.

Wayne
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