Nicely said. Too many times, I think, individuals buy
or sell a stock based simply on the price. Peter Lynch
once talked about investing as the only 'sport' in which
you could make decisions about who you were going to bet
on DURING the race. In his analogy, he spoke about horse
racing and asked whether, when your horse, in spite of
high expectations, had fallen far behind, you would continue
to bet on the horse to win. On the other hand, having
bet on a horse that was a long shot, would you pull your
money from the horse when it had gotten out to a lead.
From my own perspective, these are useful parables to
remember. I try to invest significant portions of my
porfolio in a small number of positions that I have bought
for good reasons and hold them until they meet or fail
to meet my expectations both in terms of company AND
stock performance. I guess, if I were to live to be
100, I would find that my philosophy would be constantly
refined, but I am comfortable with it currently. It is
hard to hold when you see a resistance level broken, but
really that's just your horse pulling ahead of the pack.
Isn't it wonderful that we are having this problem!!!
Just my 0.02.
J |
