Recently someone boasted to me how he knows what it means to take a small position in a stock. Is that kind of risk even reasonable?
What does Warren Buffet say about it?
Recently someone boasted to me how he knows what it means to take a small position in a stock. Is that kind of risk even reasonable?
What does Warren Buffet say about it?
Small selling is not new. People were doing that during the early 1930′s during the Fantastic Depression.
Warren Buffet wouldn’t care about small selling. He’s more an investor than a trader. Warren analysis businesses more than share prices and buys solid companies that are undervalued.
After the sell off, when the market crashed in October 2008, I read on the bloomberg website that Warren bought into General Electric and Goldman Sachs.
With so many undervalued companies such as General Electric and Microsoft, small selling is financial suicide at the moment.
Years ago, when I first small sold a down trending market, I got more excited and small sold more as the down trend continued. As it turned out my losses when the market rebounded sweeped away my early gains. I learned the hard way many times that the market is for making money, not your ego.
The sort of people who are small selling now are novice traders who only look at charts at the markets bottom or near bottom and don’t also analyze the underlying businesses.
A girl on Yahoo answers questioned if Google would be excellent stock to small sell. Google like other tech stocks is now on an up-trend.
Save it for the next bust. I reckon the next bull market boom/bust will be larger than the last, so it’s well worth the wait in years to come.
Warren Buffet does not small.
Buffett is a long term value investor. I’d stay away from small selling.