Investing style differences are what make the difference between good yearly returns and mediocre or losing ones. My investing style is to find stocks that the herd has not discovered yet and wait for the company's stock to be discovered. I have done very well with that approach, beating the S and P handily for the past ten years. I am up 14 times what I started with in my IRA. This is why I accept some risk in some of my portfolio holdings, because when you do buy a stock that has some risk, your returns are much greater when companies reorganize their business plan and make profits.
Yes, I do leave it to the personal investor to do their own due diligence after mentioning some of the recent highlights. These I glean from reading recent financial reports, CEO interviews, and other information. Information like PNX's teaming up with State Farm and Edward Jones to offer insurance to clients. In the case of PNX, we have had other people here mention the company and I didn't know how much was offered up for information. If I didn't think that the company had potential I certainly wouldn't mention it. I just am of the opinion that the positives outweigh the negatives, and I purposely waited to buy shares in PNX until more was known about their reorganizing efforts and their plan.
In the case of PNX and the proposed stock split, I think that since this is an earnings driven market of stocks, in the final analysis it will probably be a positive for the company, due to more mutual fund purchases, and greater liquidity. I just witnessed some of your lag the market after the split story in RES. I sold out prior to the split taking place due to that very concern and it did sell off. Sometimes people get upset that they didn't buy shares in the XYZ company after seeing the PPS go up six times. If you are too cautious in buying stocks and only look at the possible negatives you never put yourself in the position for good returns. You might not lose, but you never will have those multibaggers either. |
