Ray, after reading your message it makes me really understand the game a lot better. I have been going under the assumations that if I bought 1000 shares at, say $2 that you were would make alot more more if you held it until it went to $10, but I guess that would be a homerun and how many homeruns do you see, plus your anology of being IBM and holding rather them selling, buying, etc makes sense, I am in it to make money, so makes sense to not be greedy and take, like said 10% and re-do it all over. You have certainly opened my thought process. I had never thought of it that way, little by little, rather them waiting for the big pot, and since the companies I am buying do not pay dividends, it really is not good logic to hold.
Boy I sure wish I knew this stuff when I bought cheap into IMAT and it shot up to $8 within about 2 months or less, and I was not smart enough to see, so now I am still holding, and at a small loss, but I will be sure not to let that happen again.
No wonder you were able to retire at 42...
Again I can not thank you enough for sharing your philosophy with me.
I will let you know how I am doing in the coming months...
Regards...
Gary |
