Reading this thread provides a classic example of why a lot of shareholders never make true wealth in the sharemarket. Prices go up and many jump on for fear of missing out and everyone gets excited, rocket talk etc. Prices go down and many lose their heads in worry.
You can’t inherit someone else’s conviction.
(Sorry but I could not get these photos to go at the bottom of the post from my phone.)
Only doing the hard work yourself will give you the conviction required to hold a stock through all the ups and downs on its journey to full fill it’s real potential. Even long term holders of the mighty Amazon had to withstand a share price pullback of 90% and multiple pull backs of more than 50% on its journey to multi 1000% returns.
I first bought PAR at $1.50 despite learning about it very early on. I didn’t do the work early enough. I then bought shares at various times while it headed to $4.50 plus. It subsequently fell after the cap raise briefly to $1.45 at which time I added again. So like many others I have added at various prices both high and low but I have never sold a share and recently add
ed more at $3.06. I will look to add more at lower prices when possible.
I know everyone is different, we all have different time horizons, different capital needs and different investment philosophies. Some invest for the long term and some trade etc so there is no one size fits all. Uncertainty around Covid also adds extra complexity and a degree of difficulty in holding stocks and investing in the present environment.
But if you bought PAR for the “long term” (10 plus years for me) then it would be a shame if you sold your shares because of volitility that is “PAR” for the course with any biotech and especially one that is pre approval and pre revenue. Especially so as the fundamentals for PAR have actually improved while the SP has had a pullback.
I say this having been on this journey before with a few stocks that I still hold today like CSL ($28) (Largest stock holding in my SMSF) COH ($36) and RMD ($4.20). All of these stocks have had serious pullbacks over my holding period. The COH recall immediately comes to mind at which time I closed my eyes and bought more. For those that may struggle to hold PAR, get worried about pullbacks or can’t bear to watch friends etc make money on the latest hottest stock while yours stalls or goes backwards then I can suggest a couple of books to help.
100 Baggers by Chris Mayer and The Art of Execution by Lee Freeman-Shor are definitely must reads if you want to be able to hold PAR for the next 10
years or more and allow it the time It needs to
potentially build real genuine wealth for you.
Incidentally, did anyone see this tweet and look up the stock. Very interesting to the least.
Please understand this is strictly not advice and you must DYOR. Biotech stocks are inherently high risk / high reward. Know what you own and why.
(20min delay)