Technical guys are happy buying stocks on breakouts and happy making 10% to 20% on a breakout.
The problem with some of the poor investors like me is, they don’t give weightage to price movement of a stock much on daily basis , or even in some cases for yearly basis as well, as long as company’s earnings and valuation give the comfort.
It’s not been a value creater for past few years, but not been a value destroyer. One could argue about the opportunity cost etc.
But we know sometimes stock makes up for lost decade in a month or a quarter.
For a foolish investor like me, a secured loan book, growing north of 20-30% YOY usually, being offered at valuation of less than 10 times earning and almost at book value . If that’s not the bargain or a place to hide, I don’t know what is.
I could be wrong, we all have been wrong at some point in time. But I’m comfortable untill I don’t see earnings disappointing.
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