I assume this is talking about investing in, giving a most recent example, the mortgage industry or homebuilders.I have a little bit of this kind of investing in my portfolio. I thought I would try it because I wanted a small portion of high risk, high reward portion in my portfolio.I invested in a telecom stock when that sector went bust (AVNX)also Internet incubators, CMGI and ICGEthen the mortgage crisis came and I chose FBR because they seemed to divest of the subprime portion of their business, and were not financed with a lot of short term debt.I just had a hard time imagining these industries being dead forever, so my thought was to take some risk and pick up these stocks on the cheap. Since I only allocated a small portion of my portfolio to these picks, I'm ok with the risk... I'm just hoping there will in the end be big rewards to go with those risks.
here here... LUV post 9/11FMD @ 36.post biotech bubble, AMGN or DNA would have been nice, but picking it would have taken real aggots at the time, and a steady hand.
I invested in AVNX it has just post a 0.01 per share profit in it's history. It still has a high PEG ratio though so I'm not sure what all this is going to add up to.
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