The last CSCO decline, in 1994, where the stock was cut in half, I had some outstanding puts exercised against me. I decided to keep the shares. Adjusting for splits, I paid $1.09, factoring into the price the put premium I pocketed. This raised my cost base to well over 70 cents.
It may seem strange to look at those numbers today, but at the time, people were predicting a total collapse of CSCO just as they are doing today. I find it instructive to purge my files during these times and review the 'learned' words that brought me so much worry.
Today, as a CSCO long, I read repeated posts pointing out how I'm an idiot, fool, moron, and backward looking old fart, totally out of touch with today's reality. Sitting on a fify-fold return, although not as comfortable as a hundred-fold return, gives me much more satisfaction than enjoyed by our TMs, busily posting like mad-men, enjoying those few months they're right while conveniently overlooking the many years they've been wrong.
Cheers, PW.
P.S. Do the math: Up a hundred-fold, cut in half. Beats sitting on the sidelines watching and wishing, and trying to relieve their regrets by taunting those who made more profitable decisions. All it takes is a little vision accompanied by courage and patience. |
