Adventure on Wall Street part 2 - buying in the dips!

29 Jun

Posted by Tom Andries as Finance & Stocks

What’s the healthiest thing to do when your stock darling is crashing down?
… don’t watch.

From checking stock quotes daily, I changed my habits to monthly. Always keeping following logic in mind:

What comes down, will go up… Eventually!

Unfortunately Yahoo! kept crashing down from a peak of over $200 (split unajusted) in December 1999 to the abysmal measely 4 to 8 dollar range in 2001/2002.

That’s when I thought - Hey! This is an interesting buy!. After all Yahoo!’s user base continuously kept growing (though their profit margins didn’t). Alas, my parents weren’t convinced and I let it be. (Good boy that I am!)

A few years older I started investing more frequently - I almost wrote more intelligently, but that’s up to you to decide .

I’m a believer!

So, I bought more Yahoo! in a market dip at $ 34,75 February 2005. After all, you can pare your losses that way, isn’t it?

Yet the stock just kept going down… And off course, the dips kept coming and July 20th 2006 I bought… suprise, suprise… some more Yahoo! at $ 26,40. Followed by… another dip… and I bought some more at $22,47! (I’m a stubborn little thing, aren’t I?) And then a little thingy happend you might have heard about in the news?

Micro$oft

Microsoft launched a takeover bid at $32. You’d begin to think things were starting to look up, right?