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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?


To: Elroy who wrote (71329)10/14/2022 1:55:04 PM
From: Paul Senior1 Recommendation

Recommended By
petal

  Read Replies (1) | Respond to of 78765
 
That the unknowable future changes life doesn't detract from having an idea of how long you will be holding a stock before you buy it.

We have many examples here of somebody saying xyz at say $25 is worth $50 so they are buying it. I assume the person has some idea how much time they will allow for that to be realized or partially realized. Whenever that is - soon if there's a buyout offer, later - maybe a year or so - when the profits continue and the market realizes the worth. But then very soon after posting, the writer comes back in to say the stock's jumped up from $25 to $35 during the day, so they are just going to accept this great news, and they are selling while they can and closing the position. That doesn't take away from the writer having an idea how long he might be willing to be in the stock, before he bought.

Take people who call into Cramer and ask something like should I buy xyz stock. My reaction as always is how long are you willling to hold it? Are you buying it for a potential rise from its current price, maybe just a short-term pop? Would you be buying it because it's down and you like the company and are willing to hold for six months? Or because it's down and you would be ok with holding it for the next three years? My answer, buy or not, would be different depending on the answers the caller gives.