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Strategies & Market Trends : Value Investing

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To: ValueGuy who wrote (41724)3/13/2011 7:16:02 PM
From: Madharry  Read Replies (1) of 78750
 
I believe that the most difficult decision to make is when the stocks falls after you bought it what do you do. sell, hold, buy more? many of the stocks that i had the greatest gains on dropped by over 40-50% before moving up, but its tough to have the courage of your convictions. a friend of mine was an ex early investor in amgen. he said he held for 3 years and it did nothing, he gave up on it and sold it it when up at least 40 fold in the next 5 years. it works the other way too,
i held on to another silver stock buying more as the price declined. i had met and been impressed with the ceo, but that didnt stop the company from going bust when they couldnt produce enough silver to meet the hedging requirements placed upon them by the bank financing agreements. the only clue that there was a problem was the steady decline in the share price. win some lose some.
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