Ibexx, your stockbroker's post was interesting. Too many lose out by
chasing the winner's at the top and running away from the losers at
the bottom. Intel, more than anything, taught me to buy and hold, but
frankly I follow a mix of both strategies as described in your post.
Buy when a good stock tanks on bad news or a weak market, hold for
the ride back up, and then continue to hold on for a long time. My
best decisions were the following: 1) about 4 years ago, when the
pentium chip flawed and INTC dropped in half, I bought the Intel
warrants (I still have the same shares after converting in March), and
2) when the market crashed in 1987, I switched my pension fund from
50/50 stocks vs bonds/paper to an 80/20 mix favoring stocks. Both
decisions resulted in extraordinary gains by taking a big risk and
then sticking with it.
All my other playing around has done little in comparison. On a
shorter term basis I bought some KO and HD just a few months back when
they were in the sixties, also on short term bad news. They are now in
the 80's (HD split). Who needs to find the next Microsoft when the
market is so kind to a little courage.
Regards, David S.
INTC, IOM, WCOM, LU |
