On April 25th, I posted a note about a company who's stock price signaled to me it was about to lift higher. The price was about $44 per share (see the previous post). As of this writing, the price of the company is about $20 per share higher. Now, I did not have 100% certainty that this was going to work out. I make many decisions in the stock market that don't work. This is why it is critical to operate with some sort of stop loss - both in price and time.
There are only four outcomes to every investment decision: 1. Win big 2. Win small 3. Lose small 4. Lose big. Now my job as a professional money manager of other people's money is to hope for winning big, accept that winning small or losing small is part of the process, and avoid, at all costs, losing big.
One cannot compound capital at a high rate of return and take big losses. The math doesn't work.
I'm no Einstein, but......
P. Franklin, Jr.
June 15th, 2018
All opinions and estimates included in this communication constitute the author’s judgment as of the date of this report and are subject to change without notice. This communication is for informational purposes only. It is not intended as an offer or solicitation with respect to the purchase or sale of any security. This information is subject to change at any time, based on market and other conditions. Any forward looking statements are just opinions – not a statement of fact.
Investing may involve risk including loss of principal. Investment returns, particularly over shorter time periods are highly dependent on trends in the various investment markets. Past performance does not guarantee future results.