Quote:
Originally Posted by BMI
Yeah a very nice boring I'd say ....I like the dividend then....
|
Suppose you bought it for the dividend @$25 in mid 2012. Then it shot up to $45 in late 2014. Now the yield is almost cut in half and you have a huge windfall that you didn't expect or think was reasonable. What do you do?
As LE has pointed out, stocks double, triple and more all the time. That's possibly the "easy" part. The hard part is holding on. During 2015, MSFT had huge one-week swings. It would have taken huge, polished, shiny brass ones to have the fortitude to hang in there.
As someone who thinks their management sux rocks, I sure wouldn't have held on ( shriveled-up raisins here ).
Another company that did amazing with inept overpaid management - Yahoo! - now Altaba ( AABA ) was @$15 in 2012, shot to $50 in 2014. As it dropped to almost $25 in just over 12 months, would you have ridden it to almost $70 today? I would have watched you ride, but I have other things I like to saddle-up to.
If you buy individual stocks, holding on to a triple or quadruple bagger is really hard in real-time. In hindsight, it's easy. ( same with options )
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
