What Did You Buy Today?

[fenders53]

(04-22-2020, 10:35 AM)DividendGarden Wrote:

(04-22-2020, 09:18 AM)fenders53 Wrote: ABT is a great company long-term and Pharma is a safe haven right now.  It's as if all of them will cure the virus.  Most will miss out of course.  They are pulling earnings guidance.  I always have a lot of pharma and I bought a lot more on the big drop.  Now I'm overweight so I trim.  Doesn't make ABT a horrible buy today.  I just see better value.  I'll add more ABT some month soon.  These drug stocks dip and rise several times a year.  If you never sell then buy stocks when the values happen.  Your entry price does matter. 

This is what makes the forum very good IMO.  Disagreement seems to be welcomed here as long as you present a thoughtful opinion.  I adjust my positions when I am presented with logical arguments from any of the members.  I'd rather make money than "win the internet" lol.

Agreed - this is a safe place to disagree and hear other perspectives.  I basically never sell, so I tend to agree with you in general.  There's just something within me that doesn't allow me to buy something at an all time high.  I just don't get it.  And I love pharma & healthcare.

We may "argue" a lot, but as far as I know, nobody here is taking any joy in anyone's else's failure.  You really have to read posts in context, and it's MUCH easier here because you know everyone else's game well enough if you are paying attention.  Just for an example, Divemenow might buy ABT at 95, ride it up to 102 and dump it in two weeks.  That doesn't make you wrong to wait around for 80 or so for a very long-term hold.  I've done that repeatedly with ABT around my core position.  It's not like you can't find some better value for today's purchase.  We all play this game a little different.  I hope everyone wins.  I have no doubt we are learning even when a purchase doesn't work out. 

I almost never buy an ATH because my intent is almost always a longer term hold whether it works out that way or not.  I'll say again our entry price DOES matter even for a long-term hold.  I'd rather have 10 or 100 shares, than 9 or 90 for the same price.  And you can usually make that happen with some patience.

All that said, a stock at an ATH on great news may not necessarily be overvalued relative to the market. It's my opinion that ABT at $95+ and a sky high PE while pulling guidance in this economy is just not one of those times. Dissenting views is what makes a market.