Quote:
Originally Posted by MRM
Sammy, the original Baron Rothschild explained the secret to his investment success by saying he never bought at the lowest point, and never sold at the highest point. his point was that people go broke waiting for the peak or valley, so you just buy and sell based on your objective evaluation of the stock. If you get what you wanted for it, you got a good deal.
I wouldn't sweat missing out on the run up. Another famous Texas investor explained his upbringing in abject poverty after being born into a wealthy family because his father had made so much money on cotton futures that he put the family's entire fortune at risk in the market, certain that he knew when to time the absolute peak and unwilling to leave a cent on the table:
"My Daddy waited for cotton to hit 20 cents a pound before he sold. Unfortunately, the market broke at 19 and the panic set in." Cotten went to a nickle a pound and our family was ruined". Lyndon Baines Johnson
Apparently his father would have broken even as low at 12 cents or so. But the market was being supported only by speculators and once the bubble burst, cotton became worthless and LBJ's dad lost the family farm.
You got a nice spike and didn't bet the farm on it, so sleep well.
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Point well-made.
I also have some options exercisable at $42. I figured they were worthless and that the stock would never get that high before the options expire in 2014 but I may be able get a few bux for them yet.
So, do I cash them in at $43, or wait for $50? Maybe $60? Gotta get that crystal ball out of the shop.
