...Works every time, if you are patient...
Today, December 20, 2000, CSCO closed at $36.50! Some people think their world is coming to an end. On November 5, 1999, CSCO closed at this price too. So what's the big deal about a year, a month, and a couple of weeks lost? We're not dogs, with a seven year life expectancy. Now, since roughly every 5 years the market has a 'going out of business' sale in CSCO shares, one would think investors would be prepared for this, or at least not surprised.
So, what should people do today? Some view the decline as something that will continue, perhaps forever, while others recognize declines, like rises, have finite lives, end, and reverse direction. The investor who believes today's discouraging price movement direction is permanent is as foolish as those who hold the view that price appreciation will persist forever.
Is the value received from purchasing a share of CSCO greater than today's price? I think it is. More importantly, will that value be greater at some time in the future? I think it will. Will this become apparent soon? I honestly don't know. Do I perceive the potential rewards of investing in CSCO exceeding the risks? Yes. Do I enjoy purchasing today, only to see a better bargain tomorrow? No.
Cheers, PW.
P.S. Like your handle. |
