RE:RE:RE:Tax loss selling. 30 days to earnings.Ronbromleygross wrote: Good comments Gabriel
i read a lot about how the wealthy take advantage of Mr.Market as well.
Speaking of Waren Buffet, another great quote he uses is the following:
“you don’t and shouldn’t swing at every pitch that comes your way. Just wait for that one pitch that is in your strike zone them swing for the fences”.
As most people who have done any formal analysis of their own or followed the smart money ( RBC, CDPQ, Scotia Bank, Taylor Asset Mgmt, Veritas, Gabriel I would include in this prestigious club) over the last 3-4 months, they have bought at average prices in the high twenties or thirties as average cost of their purchases over several purchases, why on earth would anyone not want to buy at $17 or $18 we sit at today? Do people really think we will never reach the average prices paid by those smart institutions again??? They paid those prices because they saw value there. They must feel today’s prices are a “screaming buy”.
Sure the market has taken a bit of a pullback recently but remember too that you are NOT buying the market. You are buying individual companies within that market. A company like SNC that is undervalued compared to its true intrinsic value is a prime example of my point.
People buy stocks much differently than they would buy groceries. If a grocery item Is 50 percent on sale and you enjoy it, the natural tendency is to load up the shopping cart. However, when people buy stocks they think differently. They like to buy something that is priced at an all time high but do not want to buy something that is so cheap but has value worth 100 percent to 200 percent higher. A company like SNC that history shows has always reached much higher prices over the many decades they have been in business. At one point they reached $100 per share and then they did a 3 for 1 stock split. If memory serves me well. I was there for that ride too.
I used the opportunity to add to my position today and will continue to average down at these insane prices. My average price now is roughly $23. I am convinced I will double my money. I am also convinced I won’t have to wait 5-10 years to get there. I say maximum of 2 years from now to double. SNC has plenty of options at their disposal to unlock that value. The large majority shareholders (RBC, CDPQ, Scotia bank) will make sure of it as well. I say there are discussions happening behind the scenes. We will see a big spike in prices sooner or later. The move will come fast and furious. Too many people will want to buy when the skies are all clear and it is safe to go in the water again. Unfortunately, by that time, the easy money will have already been made.
I don’t see too many bargains in the market these days with markets at all time highs. I am weary of investing in the markets today in general. I don’t have an issue with loading up on value stocks though.
Batter up!!!
Feel free to comment or add to this!
thx
Ron
You did double.