| | | what is your targeted timeline? No, this is not a useful question. We all invest TODAY and want stocks to go up TOMORROW. The idea that the stock will decline over the next six months (for example) and then go up a lot after that isn't a persuasive argument to buy a stock.And if the view is correct that it will go up a lot after the decline is accurate and reasonable, then it wouldn't decline in the first place. I have a different opinion.
To me, when people post about a stock here, an implied question that I do have is, "How long are you planning to be in the stock"?
How many times have we heard people say "I'm buying a stock, because management's getting their act together and the stock will rise in a couple of quarters." Then a short time later selling, "Oh, I changed my mind. Oh I found something better." These stock buyers have no idea how long they will actually expect to be in the stock they mention. Especially if it's turned against them or maybe not moved much at all (dead money).
How about takeover candidates? They often decline after an announcement but work out well if/when the takeover is complete. The stock maybe doesn't go up a lot, but that's offset by making a heavier bet on the presumption that it WILL go up eventually (to the takeover price). |
|
