Netflix: The Ultimate Growth Stock
Peter Mycroft Psaras submits:
Growth Investing is very difficult to practice as one piece of bad news can send your stock crashing down in price. This happens mainly because expectations are always so high and perfection is expected. Thus as a growth investor you are forced to have just a limited number of holdings in your portfolio. This is done as one needs to be a hawk at all times and watch what is happening in one’s portfolio for a potential negative events. It’s a matter of time and not a lack of opportunity that forces one to have such a non-diversified portfolio. There are many wonderful growth stocks out there, but there is just not enough time to watch over more than let’s say 20 holdings at a time.
A perfect example of a negative event was when Blockbuster’s (BBI) management issued a warning to its investors Tuesday night of a potential bankruptcy happening a lot sooner than the investing community has expected. Here is the link for the Blockbuster news that caused the stock to crash 25% in after hours trading.
Investing, Long Term Investment, stock market | admin March 17, 2010
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