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Re: 12 Cheap Utility Stocks to Buy According to Analysts 

By: Decomposed in 6TH POPE | Recommend this post (1)
Fri, 14 Apr 23 3:04 AM | 39 view(s)
Boardmark this board | 6th Edition Pope Board 		Msg. 41770 of 58540
(This msg. is a reply to 41764 by Zimbler0)
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Zimbler0:

Re: “I take it that the sort of bankruptcy 'they' went through didn't involve share-holders getting wiped out?”Sure it did. But do you understand that a stock that grows at 33% per year but loses 100% of its value every ten years is a CRAZY good deal? It will, on average, grow 13-fold before getting wiped out. There's plenty of time to get your seed money out. Such a stock is a tremendous BUY nine years out of ten... even though it's an awful buy-and-hold.

BTW, I'm just trying to make a point. PCG won't have a 33% return every year. But neither will it fail every ten years. The point I'm hoping to make is that stocks can be greatly undervalued even if they aren't great companies. I've done fairly well in finding risky companies that rose tenfold and more. And for every one of those I found, I found several that cost me a very large chunk (sometimes even 100%) of my investment. But do the math and you'll see that this can be a terrific strategy so long as you consistently have fewer than NINE wipeouts per ten-bagger. And I have.

Here's another way to look at it:

An investor has $10,000. He puts $1,000 into ten risky companies. One of the ten is a ten bagger. The other nine lose everything. The investor is EVEN. If he does any better than this, he's money ahead, maybe even far ahead.

My failure rate hasn't been anywhere near as bad as the scenario I just outlined.







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Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months


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The above is a reply to the following message:
Re: 12 Cheap Utility Stocks to Buy According to Analysts
By: Zimbler0 in 6TH POPE
Thu, 13 Apr 23 9:52 PM 		Msg. 41764 of 58540

Decomposed > I bought PCG twice in Summer 2020... less than three years ago.


So,
I take it that the sort of bankruptcy 'they' went through didn't involve share-holders getting wiped out?

Zim.

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