A Few of My Stock Market Rules
I believe it’s very standard procedure before pretty much every large company’s earnings. A group of hedge funds whose only strategy is to take large positions in stocks right before their earnings and look for a “pop.” And if they don’t get that immediate “pop,” they sell their stock into the market at whatever price the market makers and market insiders will give them. And they’re in a weak position at that point, and they take terrible prices.
We have to suffer through the volatility.
Remember: When we look at any single stock and their business, we’re always looking at the future. Yes, the current quarter might be a little bit slower, a little bit faster. However, it’s what it points to for the future that truly matters.
I would tell you that, in general, you should try to buy as many of our stocks as possible. I know that everyone’s budget for ideas is limited. However, you don’t want to miss out on one of the stocks that might go up a lot — 500%, 700% — and if you own as many of them as you can — or if possible, all of them — then you’ll never miss out on what could be the biggest winner.
The other thing that I want to mention, because we’ve been getting quite a bit of email about this, is: Can you buy the stocks outside of our buy-up-to prices? And the answer is that our buy-up-to prices are a guide. Given the upside there is room to buy them above and beyond where we lay out our buy-up-to prices at. And our buy-up-to prices are really designed to make sure that for the days that we’re going to get this crush of buying, that we are not spiking the price up, and we’re not just handing market makers an enormous amount of money, and also causing unnecessary volatility that hurts everyone.
So you can buy our stocks above their buy-up-to price.
Another thing that I want to provide a suggestion for, is that many of you want to know how much you should put into each stock. And my general view on this is that if you are not sure what to put, you should put an equal amount into all of our stocks, and that gives you two benefits. First, I mentioned earlier that you never miss out on a really large winner that can completely transform your portfolio, and second is that you’re never putting all your eggs into one basket.
The worst thing you can do with stocks is take an all-in, “bet the farm” bet on a single stock, because if there’s a problem with that particular stock, you’re going to lose a lot of money, and I don’t want you to lose a lot of money.