The Best Stock I Never Bought.
Back in March, when I was looking at and buying stocks that had totally cratered, I let negative opinion lead me to making ( or more accurately not making) a decision to buy a company headquartered in my own hometown.
It was priced below $3.00 at the time, down from $18.00, and could you imagine, paying a $.40 dividend. That was about 13% at the time.
I looked at it time and again, knew the history of the company, and should have understood it was just the "mass hysteria" of the market that had it beaten down.
There were negative comments from alalysts, and other various "pundificators", that said they might not even survive.
I just could not get myself to "pull the trigger".
As I watched it start to rise, I just could not shake off the negative thoughts that had been planted in my head.
When it doubled, then tripled, I told myself, ok, you missed it. It's too late now. Better an opportunity loss than a real life loss.
Today it is up 500% from when I "almost" bought it.
What I failed to do, and have since learned to do, is look at the long term, not what is happening in the moment.
That stock was Temple-Inland.
I have vowed that if I decide not to buy a stock, it will be based on my own analysis and opinion of what the future prospects of the company are, not on what I see and read on the web.
I am sure I will make mistakes using this method, but they will at least be my mistakes, and based on my own judgement, and not the opinion of others.
I do value the opinions expressed in CAPS and by others, but I use that as a starting point to do my own DD, and come to my own decision,not letting myself get led astray by either too much optimisim, or too much negativisim.
Just thought I would share something about stocks instead of the coming demise of Western Civilization that seems to be so prevalant in the blogs these days.
Have a good weekend and happy investing.