What Did You Buy Today?

[fenders53]

It's all about the timing when playing with the high flyers. When they melt down there are often a lot of short-time holders. Some of those smart enough to buy them really low know when it's time to jump. New investors tend to average down because they are in denial they screwed up getting in late. It can be a painful to ride it back up, if it ever does. I know a guy that held INTC for about 10 years and MSFT for 15. I should have given up on Microsoft but held on until I had about a double finally. Then I cashed out and it more than doubled again but FAR quicker for the next owners.

I'll never hold a high PE chip stock again. The story always ends the same if you hold them long enough. You could buy the next INTC early but that's a lotto shot. The best chip stocks end up crashing like NVDA. NVDA is solid and may be back, but it might be 10 years to hit 200 again. I'm not against owning a high flyer, (I own Amazon now), but I would never load up my port with high PE stocks again, and definitely not semi-conductor stocks. I owned AMD when it was a high flyer in the 1990s for about $17. I'd be up $2 if I'd held it until today. The most powerful chip stock ever, INTC hasn't gotten even close to it's 2001 peak. The real profit was made over 20 years ago. NVDA could very well follow the same path, or not. The market somehow forgets chip stocks are cyclical. I don't know of any exceptions long-term. The same dozen companies are still here doing what they do every 3-5 years.