The Wall Street financial jackals extract their “take” from investors just like you. They perpetuate the myth, “Buy into good companies and hold on for the long term.” Sure, sometimes these stocks go up, but they also go down. In the meantime, these greedy insiders make money either way. They can do it because they’re playing with a whole different set of rules.
My universe is what you might call “new growth” – everything from IPOs and secondary issues to highly liquid companies that have been around a few years but are still full of vim and vigor.
This distinction lets me follow all kinds of interesting new companies, investing and trading in them over the full extent of the “life cycle” – from the big IPO debut, to the 12 to 18 month run-up for 300% to 500% gains, and then to the “shooting star” period where the high flyers flame out like comets and come crashing back to earth.
It’s almost like you’re a wildlife biologist, putting radio tags on these newborn companies and then following them through their most rapid stages of growth.
And a key thing is you can go long and short these high flyers at various points in the cycle.
Those were some pretty good plays. And there will be plenty more too. I look forward to having both an investing and trading service so we can split out the longer-term ideas with the potential to provide excellent investment returns, and the high octane stuff that can deliver big gains in a matter of days to weeks.
Posted: November 12, 2008
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment