You guys have all heard me say "priced for perfection".... With that in mind -- just look at Apple (AAPL).... their business is FINE... their profits are FINE... their stock? Down 35% in one year. OUCH. The reason -- people aren't impressed with their latest offerings... and when a stock is priced for perfection - it gets KILLED by stuff like this. You always need to be aware of this phenomena.
The hard part is to know when that is happening. For me - it's just a pure judgement call. Kinda like I've reminded people "when the grocery clerk is telling you about the money they made on "X" --- RUN! Well --- stocks are like that... when the TV is talking about the stock -- and the guy on the corner -- and the gas station guy.... RUN (SELL!).
It's fun as hell if you bought low -- and ride the wave to the crest... but most of us never are that clever. We don't discover the stock until it's near the crest... and that's when you get your ass handed to you. So just LIVE AND LEARN is all I'm sayin'. It's always so tempting to jump in because something is "hot".
I've learned to walk away from "hot" (flipping houses anyone?).... because I figure I'm just joe average and by the time I've figured out it's hot - it's too late - the smart money has already come and gone.
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Brian Hobaugh SCCA National Tour June 2014
First Hemi 'Cuda Convertible Ever Built
Short clips: Goodguys Pleasanton autocross and pit videos
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