Am I lucky or lazy?
4 Comments so far
Leave a comment
Last year, at the height of the stock market — also at the height of my guilt for not having entered the market for the bull-run — a share of Citigroup’s stock was around $50-ish (one more year ago, it would be around $80 something). For some reasons, I had always set my eyes on Citigroup and thought that if I buy anything it would be Citigroup. In fact, last year I was THIS CLOSE to buying Citigroup.
In the past couple months, Citigroup’s stocks fluctuated around $12 to $25. During the worst days of the market, the price of a share was as low as $11.
But today, it hit a new low (as far as I casually know) — $9.6
This financial downturn just doesn’t seem to end. My laziness last year, last month, and last week saved me.
4 Comments so far
Leave a comment
Leave a comment
Line and paragraph breaks automatic, e-mail address never displayed, HTML allowed:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <pre> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>
So you should buy it now… in about 1 or 2 year, it will shot back up to $50’s.
Comment by hunnie910 November 13, 2008 @ 7:18 pmHm… it only saves you if you buy now and end up making a profit with it.
Let’s say it is going to jump up to $200 in 2 years. In that case, your laziness didn’t save you. Because even if you have bought it, as long as you don’t sell now, you can still sell it later at $200 and make a (smaller profit comparing to if you buy now, but still a) profit.
So, conclusion is: it’s hard to say what the right thing to do is. (haha… equivalent to no conclusion.)
Comment by me November 13, 2008 @ 8:13 pmI wonder whether we should evaluate the risk of a stock by the max distance that it can fall. For example, a share of citigroup is currently $5, and goldman sachs is around $50. Although you may say that it depends on how many share outstanding the company is and its total market capitalization and blah blah — regardless of that, $5 still only have $5 dollar to fall and $50 has $50 to fall. So wouldn’t it be more profitably regardless to got for the $5 stock if I believe that neither company will default?
Comment by Wendy November 21, 2008 @ 3:08 amAnna,
buy 10 shares of the $5 stock. Merge them in your mind and you have one $50 share. And now what?
Default plays no role in this.
Comment by pinus November 22, 2008 @ 12:32 am