>> I have a maxim that I follow with close to religious fervor:
>> if the underlying long-term fundamentals of the company
>> remain intact there is no reason for me to sell it.
Ok, the market ultimately establishes the 'correct' value. So, if the fundamental economic characteristics of a company stay the same, and the environment decays around it, calling its relative value into question, tangibly affecting its price, and possibly its future value, you still shouldn't sell it? Isn't this somehow suggesting that you should treat firms as if they exist in a bubble rather than part of a financial ecosystem? If a thing's context changes, it changes.
I don't disagree with 'buy and bury' IF you have reason to believe that you are exercising the best investment option available to you, for your personal profile. Trouble is, some people choose their homilies unwisely and stick to them doggedly, to their own peril. Buying a stock and holding it through a hurricane doesn't mean one has either balls or integrity. If you remember that the object of this game is to smartly grow your hard earned assets, you should take heed when the landscape changes.
You don't get medals for riding stocks like a bronc-buster. Hey, if you've gotta have war stories, tell them in the third person --but keep your profits in your pocket.
PS - Jesus, I think I just set a record for the most metaphors in one message! Sorry <g>.
- DM |
