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I think it all depends on your belief in why people buy stock.
If you buy stock believing it will give u a share in cheap cash flows that will increase as the company does well etc and make your investment worth lots more? Buy value stocks carefully selected.
If you buy stock believing that current predicted high growth rate is conservative ( somehow you know more than all Wall street analysts and company insiders etc) and said stock will exceed those expectations justifying its sky high PE( and you can sell to a “greater fool”) buy high growth stocks.
It is interesting to revisit the point of the original post, i.e., the desire to achieve some measure of safety and protection with derivatives, options, etc.
I’ll believe anything @Mark. The 2 mid-caps I sold Friday, locking in a couple 8-10% short-term gains, have both advanced another 7-10% apiece in the 2 days since I sold. Silly me!
Comments
If you buy stock believing it will give u a share in cheap cash flows that will increase as the company does well etc and make your investment worth lots more? Buy value stocks carefully selected.
If you buy stock believing that current predicted high growth rate is conservative ( somehow you know more than all Wall street analysts and company insiders etc) and said stock will exceed those expectations justifying its sky high PE( and you can sell to a “greater fool”) buy high growth stocks.
Maybe a little of both?
(From Barron’s “Mid-Year Roundtable” July 15 issue)
Brilliant deduction, Watson!
Giroux’s Picks: Aurora Innovation / AUR, Danaher / DHR, Revvity / RVTY
And he still likes utilities.
That's out the window now baby. Party time!