No. of Recommendations: 1

MFPP is Motley Fool Premium Pass, one of two services I serve as a Home Fool.

Time to "fix" a non-strategic problem can vary, since some fixes are faster than others. Also, there can sometimes be quite a lag time between the actual "fix" and when it shows up in the stock price.

One good example was JNJ with the Tylenol scare; they reacted immediately and well, (plus the problem was a small part of their total business), but the effect on the stock was waaay out of proportion....and getting John Q public to believe all was OK took time.

JNJ is now experiencing what I view as legalized extortion regarding baby powder and opiods litigation, and the stock is priced lower than it should be: not enough for me to jump in with a big addition yet, but assuming the worst, they still survive/thrive. My action so far has been to turn the dividend DRIP program on for my sizable position....and await some more headline grabbing lawsuit awards for a larger dip....maybe magnified by a general market correction

Other "fixes" sometimes are very quick, like malfeasance in upper management, which hits quick and can be solved relatively quickly. Others are relatively slow, like WFC, which is beginning to pay off.

Using options can help with timing/patience on these waiting periods, since they can be repeated/rolled again and again while one's thesis plays out, generating extra "dividends" while one waits.

Patience: the toughest investing lesson I ever had to learn

One more thing: I typically use the BMWM for solid companies who have been around for along time and have a track record of weathering "storms"; not newer companies, or companies in the tech arena where things can be obsoleted quickly.

Yet one more thing: Use of the BMWM has to fit your overall investing strategy; it doesn't fit everyone's. Here is a dated post that outlines mine:

BO and MFPP Home Fool
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