I bought SIRI years ago because this nutty guy was running around our community screaming at people to buy it. The shares I own now are almost zero cost or perhaps sub zero because I cashed out a few times, I thought I was going to sell it recently but when I looked at things they just won’t quit. They just started putting them in used cars, for example, and it doubled their market penetration! And I still think radio is boring…!
The moral of the story? Find that nutty guy and buy a position in whatever he is screaming about today!
UPDATE: I think in order to be less vague and give readers more inspiration I should give the real data on SIRI, however, I do not want to get in trouble for disclosure as it might be considered advice. I see all these guys with disclosures about their postings are only for inspiration and not intended for advice and so forth but how does that change the message? Actually I was going to disclose the numbers here but will not just suffice it to say my portfolio shows a 1363.99% gain (not realized) as of today 2013-07-16 and I believe I bought it, sold enough to take my cost back plus around a 50% profit and held that…so please find us another nutty village stock screamer!
PS – I have a trailing stop on SIRI and most of my holdings. If it closes below 25% of the highest close I cash it in and lock in my profit, closing the position. In the case of SIRI I would at least leave my original cost invested and consider it a “free” position! Actually I would keep whatever I consider a “full position” based on my diversification model in SIRI and just hold it forever. At this point SIRI’s value is higher than 4 “full position” sizes so that would work out to me grabbing more than 75% of the value and leaving the under 25% there as a position and kind of a tribute to the original holding. I usually never buy any company unless I understand their business and revenue model, market demand and other fundamentals like balance and income sheet and so forth. So whereas I would like to dump all of it coldly on a trailing stop issue on something that I admire as much as SIRI and many others I hold it would suffice to grab everything above a “full position” (at the time of this writing 1-2% of my entire portfolio) and just keep tabs on the business. Also it should be noted that if the stock prices drop more than a certain amount and the fundamentals are strong and the price starts to trend up it is a great time to buy more.