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Daily Archives: May 29, 2009

When Buying Stocks, Tight is Right

May 29, 2009
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When Buying Stocks, Tight is Right

If you ask most investors, you’ll find that they love to buy on weakness.  They want to buy a “good company” after the stock has fallen 10%, 20% or more.  A few investors, on the other hand, like to buy strength–they want to buy a stock as soon as it breaks out of a range, often into new-high ground. (The phrase “buying strength” always reminds me of Carlton Lutts, who founded our company decades ago and successfully ran Cabot Market Letter until just a few years ago.  He told me that, back in the 1960s, when Chrysler was a...

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