Investing Basics

I’ve been investing for 20 years, and for the first half of my investing career, I repeatedly made the same mistake. I’d buy beaten-up stocks, they’d barely budge for an extended period, and I’d finally give up and sell my investment for a modest gain or loss. Invariably, when I looked back on that stock a few years later, it had greatly appreciated in value — long after… Read More

I’ve been investing for 20 years, and for the first half of my investing career, I repeatedly made the same mistake. I’d buy beaten-up stocks, they’d barely budge for an extended period, and I’d finally give up and sell my investment for a modest gain or loss. Invariably, when I looked back on that stock a few years later, it had greatly appreciated in value — long after I had given up on it.#-ad_banner-# Any time a stock falls sharply, it’s awfully tempting to jump in. We’re simply conditioned to pursue items when they are on sale, so a 50% or even 70% plunge can get our juices flowing. You’re probably right that deep value exists when a stock has sold off sharply. But that doesn’t mean you should jump right in. Turnarounds are one of the few types of stocks in which you can double or triple your… Read More