Originally Posted by
born2invest
No I wouldn't pick a stock like PEB. Firstly it doesn't make and profit. Secondly I have no idea what the future for cancer research will look like in 10 years time. I can't pick with even a little bit of certainty if the company will even be around in 10 years time. It might be broke. Compare this to a company like MFT, POT or ANZ. Trucks or ships will still need to transport goods across the world in 10 years time. More people want to live in NZ and our exports should grow to meet international demand so more goods transported. ANZ will be around because people are always going to borrow money for houses, businesses and use bank accounts for the next 10 years time.
I would read all their annual reports from cover to cover. Talk to anyone who works there or customers who have seen or used their products and services. Anyone in the research industry that has an opinion on the company, etc.
You say "hope for a better return" in your post. Is that what you want to base your investments on? I might as well buy lotto tickets because I hope I can win. Come on buddy, you have read The Intelligent Investor, it explains the difference between and investor and a speculator. I suggest you read that chapter again.
I would hold onto your cash and do more research on what makes a good investment. Investing in stocks is not a 100m sprint it is a marathon. So pace yourself and get your head sorted out so you can make rational decisions rather than getting too excited because you see the squiggly line of DIL, PEB, SUM go up so it must be a good investment. Read all you can on investments, get a clear head, put together a good plan and stick to it.
When I first started I got extremely excited with stocks. I watched the prices every day and got all these big ideas in my head about how I was going to make my millions. Now that I have a plan, I stick to it. I don't let emotions rule my thinking and stick closely to my strategy to the point that investing has become emotionless and I'm following a process.
Your posts look very familiar because I used to say exactly the same things on a different forum Aussie Stock Forums under a different username with all these exciting plans. I soon learned the ones that harped on about the likes of DIL, PEB made lots of money on those stocks, but because they were the speculative type, they also lost lots of money on other stocks, but they never talked about them. The people I take advice from on this forum are the likes of level headed people such as Sparkytheclown, Snoopy, KW, etc who follow a process and don't let emotions rule their thinking.