At this juncture in the stock market, great stock purchases are really hard to find. Not that there aren’t any, but the “pickings are slim”.
Beware of the song of the siren. Cover your ears and fill them with wax (Now, not literally!). Many are enticed at this exciting market level, but beware.
If you bought a stock at $10 and now it is at $350, should it drop in price to $200, you still have a 20 bagger. No sweat. Now a 20 bagger is twenty times what you paid (200/10). That’s from the days of yore with Peter Lynch.
If you bought that $350 stock just recently at $325 and it drops to $200, you have a 38% LOSS (1-(200/325)). Ouch!
You only have to look to those who bought Game Stop at $400. Game Stop is now at about $40! The song from the siren sounds beautiful, but can be harmful to your health and wealth.
Buying something when no one wants to own it is how you get a deal – no matter what you’re buying. And, owning it way less than others are paying for it currently is having a “margin of safety”.
When the music stops, it will stop suddenly and chairs will be hard to find at that juncture. If someone wants to make a mother load in short order, improve your chances. Buy a lottery ticket!
Be smart, be well-read, be aware and be successful.
