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Now is time for TMF to learn from these mistakes & clean up the bad side of their methods IMO.They & I'm not suggesting it has to be TA based, need to sort out the sell side.This is how portfolio's get bent one stock can either make your port's up look great & one stock can just as easily be a killer. Whether this stock ever trades at $276 again is not yet known, but it cann't ever be disputed that it did.

To me it's a great example that we all should take note of.
Like the Gambler,
You gotta know when to hold em,
know when to fold em,
know when to walk away,
& know when to run,
You can't avoid risk after all no risk no gain, but you gotta try & put the odds in your favour.You can only judge a investment on a reward V's loss basis if you calculate possible loss(the amount under your buy in you cut your losses at),against you projected fair value(FA) /or TA price targets(reward).Thats the failure with these methods IMO, risk is not factored in , all the work go's into the stock's selection.


It's the amount of money we left on the table when we bought Celera Genomics (NYSE: CRA) on Dec. 17, 1999 for a split-adjusted $39.75 a share, rode it all the way to Feb. 25, 2000's intraday high of $276, and then all the way down, to yesterday's $20.22 close. Powered in part by Celera's astonishing trajectory, the Rule Breaker Portfolio's value came close to $1 million in Feb. 2000 -- its highest value to date. At yesterday's close, it was worth $347,281

http://www.fool.com/portfolios/RuleBreaker/2002/rulebreaker020402.htm

JR
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No. of Recommendations: 2
I agree with you there, Jono.

As a staunch fundamentalist, the hardest decision is invariably when to take a profit. It's more difficult to rely on fundamentals for deciding when to take a profit than it is to decide when to accept a loss. It's not too hard to work out when a stock is 'over-priced'. Selling at that point though, would cut out some some substantial potential gains. It's not at all unusual for stocks to not merely pass the 'over-priced' target, but exceed it by double or more.

We've had plenty of examples in the recent past on our very own ASX:
eCorp (ECP) at $8.30
Biota (BTA) at $9
Telstra (TLS) at $9.30
Cochlear (COH) at $50
Resmed (RMD) at $11
NewsCorp (NCP) at over $20
The list goes on ...

TA may have an advantage here. Alternatively, the Kenny Rogers professional gambler style of money management ought to be preferable to watching your winnings evapourate. After all, at that point, holding is more of a gamble than an investment.
Just my thoughts,

Chris





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After all, at that point, holding is more of a gamble than an investment.

Yes I understand your point about when to take a profit if your a FA'er.

I thought your last sentance above was very good, sums it up really well IMO.

JR





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