All my stocks are down! Panic time?
Not really. Like anyone who owns stocks and checks them regularly, the last week has been trying to say the least. I hold primarily smaller cap stocks and the value has fallen about 10%. So I take a look at the issues and try to see if I missed something that affects what I thought made them attractive in the first place. The answer is generally, no. I sold my position in (WSTG: 7.40 -0.18 -2.37%) after the quarterlies came out, but otherwise still like what I own and the stocks in my 20 Stock Portfolio (not completely the same).
As I have refined what I am doing on this blog and with my personal investing, I have developed a focus on finding stocks that are 2-5 year heros. I try to find stocks that I believe will double or better in that time frame. So if a stock is down 10% or 15% or more ((TMA: 0.1825 -0.0175 -8.75%)) from where I bought it, the longer term prospects remain intact.
(ELP: 19.86 +0.23 +1.17%) released earnings today. (GIGM: 10.71 +0.15 +1.42%) and (SFL: 27.88 -0.38 -1.34%) are coming in the next few days. I have raised some cash and looking for the best opportunity to add to my positions.
I wanted to write this post as a contrast to what I often see from stock analysts and the financial media, where they recommend “stock XYZ currently $25 with a target of $28 in the next 6 months”. That type of recommendation means almost nothing if the market goes down in mass. I am investing in stocks for longer term out sized gains, and that process definitely helps me weather market conditions like we have recently experienced.
Filed Under 20 Stocks, Fear, Small CapComments
2 Responses to “All my stocks are down! Panic time?”
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Tim - Good job sticking to your methods!
Thanks Jeff, mostly for being a regular reader.