i don't like to see any individual investors lose money so it's interesting to understand the thought process of long term investors.
If you can't stomach your stocks losing 50% of their value at some time then you ought not to be investing. CCP has for the last 10-12 years earned 15-20% ROE paying back about 50c in the dollar of earnings in dividends. If you can find other stocks returning the same then please let me know. IT is called compounding.
Obviously you can rely on dividend or Capital Growth, I think we will agree their will be little or no dividend for CCP in the next few years. Dividend will probably be reduced in the short term though it is the ROE that I care about more. It is the business, competitive advantage etc.
Even as a long term investor were you not tempted to sell at around $40 and invest that profit elsewhere.
Not at all. Why would I want to pay tax on gains and forgo further 15-20% compound growth. It is very, very hard to find. The market does not care what price I bought at. The market cares about what CCP earn now and what their prospects are.
CCP Price at posting:
$14.00 Sentiment: Hold Disclosure: Held
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