From beginning of this year to today, most of the stocks in my portfolio rebounded back sharply. However, I sold VOXX and ADGF last year when they dipped and switched them to BAC. So far, the rewards from rebound of BAC stock prices are less attractive than those from VOXX and ADGF… My hard lesson is: I need to be patient. And wait long enough for VOXX and ADGF to come back strrongly then sell them to buy other undervalued equities. This should be better strategy than selling them for other stoks when their prices tanked.
Nobody knows when the stock price will finally meet its intrisic value, but eventually it will. It took VOXX a year and then it did it basically in two weeks!! In a value situation you never really know the when the catalysts will take effect and when the fundermentals will bring Mr Market’s real attention. It just happens suddenly. So, we MUST sit tight and wait patiently and as long as the fundamentals do not deteriorate and continue to improve in the right direction, the stock price eventually will follow its intrisic value and reward us. … Hopefully, I can seriously take this lesson and do better in year 2012.
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