> gMoney wrote: > So please tell me how Buffet's selling of a stock right before it JUMPED in > value by 40% was a good idea for him...or you? >
There's a few general ways to make money in the market: short-term (like day trading) and long term like buy-n-hold. These 2 ways have different strategies. In short term trading you try to do what you're describing with BUD: buy lower today, sell higher tomorrow. If the tomorrow price is 40% higher AND YOU SELL then you realize the gains. If you don't sell you've made nothing and the number is irrelevant. Thus the short-term bet is that some event(s) will have a positive effect on price and you'll sell right after those event(s). In long term investing, you're betting that over the long term, say 20 years, the stock will be worth more when you sell. To be a confident long term investor, you need to believe in the management, the product, and the customers. If your confidence drops in any of these, you should sell and put your long term money else where. So Buffett sold very likely because he lost confidence in management over the long term. Given his track record, I'll trust him on that call and feel confident he'll find a better long term vehicle for my money. Did that answer your question? ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;203748912;27390454;j Archive: http://www.houseoffusion.com/groups/CF-Community/message.cfm/messageid:269942 Subscription: http://www.houseoffusion.com/groups/CF-Community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5
