Skidos,
A little story that I hope is useful to you. In 1999 (I was 33 at the time) I invested in a stock (TEXN, now TFCT) that I was convinced would be my multi-bagger. I bought almost 100K shares at $.20. In early 2000 the stock went from under $1 to $5.40 by mid-March. My investment went from ~25K up to $500K with a one day jump of $1.50/shr. I was convinced it was just the beginning and could do even better although I sold ~20K shares on the way up. The stock started a slow tailspin, but I was convinced it was just a minor correction and bought more in the mid $2s. Needless to say it continued to slowly fade and after a 100:1 and 30:1 reverse split it is now worthless. Turns out the 3 product lines were mostly a not profitable and the company played games to show growth and it all happened at just the right time from an investor standpoint. I sold out a couple years ago with a small (few %) profit. Since then I try to find quality profitable companies consistent with the VMC approach Bobwins has already so eloquently described. The bottom line is to set mental targets where you will evaluate your stock and unless something verifiable (filings, extensive DD) has changed to make the valuation compelling, sell some percentage and let the rest ride. Don't get too greedy and hold out for the extra % and recognize the tide can turn at any moment, even if the company is legit. Much better to set reasonable targets and achieve the three bagger, instead of the temporary 10-bagger on paper that evaporates. I am now 40 and have managed a reasonable 16%/yr over the last 10 years and am well on my way to early retirement. Best of luck to you.
Mat
AI
