"Give me as much as I can get. And nothing else. I like this stock. I really want to own it. I'm going to back up the truck right now." Not a diverse way to invest. Maybe don't do this if you can't stomach big price moves. A loss would wipe you out. In other words, don't back up the truck.
But if you are gonna back it up in real life, it means that you probably bought the stock at $20, thinking it'd earn $2 a share next year and double. But they guided to $1.80, and the stock went to $16, and then one quarter later they guided down to $1.40...so now, with the stock at $9, you think the era of missed quarters is over, and you want to own tons of this baby. Load every share that'll fit in the truck.
Related or Semi-related Video
Finance: What is Alpha?11 Views
Finance allah shmoop what is alfa All right well you've
heard of the alfa dog the alfa male an alfa
bet soup investing alfa is good when you have a
lot of it If your index iii the set of
investment returns numbers you were being measured against was saying
the s and p five hundred and it went up
eleven percent last year and you ve a trading or
investing in stocks and maybe options and whatever other vehicles
you deployed like dead and you know leverage and you
were on lee up eight percent last year Well then
you had low alfa sorry just keeping it real You
actually destroyed value after all your hard work from that
year you could have done nothing I he just let
your money sick and an s and p five hundred
index fund played golf all day and night If you
you know had those glow in the dark ball thing
is and you would have done three hundred basis points
better than you did trying teo you know outsmart mr
market So hi alfa Good low alfa bad unlike your
depressing golf score ask sophie if you need some help 00:01:09.415 --> [endTime] Home
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