For A Buy And Hold Strategy To Work Effectively You Need To Buy
January 11th, 2007
Approximately 4 years ago I was looking at Corus Steel shares on the London Stock Exchange. They were at the very low price point of 9p per share. Earlier in the year they had been down to 5.5p. Analysts believed then the company was going to go bust because there was little demand for steel in the market.
As Corus was the new identity of the formerly government-owned British Steel I believed that it was unlikely to go bust as the government would step in at some point if the situation got really bad.
I then moved house, moved country, started up in a different industry, spent some time with my wife and forgot all about the stock. I was planning on a Buy and Hold strategy especially for stocks who have been affected by bad news.
I was browsing the newspaper today and lo-and-behold, Corus caught my eye. As at close of trading 10 January 2007 it sat at 536p. A 59.5x appreciation or a 5950% rise in that time. My ‘dipping-the-toes’ investment of approximately $12,000 would have been worth around $800,000.
March 21 2003 - Corus Group - 9p.
January 10 2007 - Corus Group - 536p.
I really should have bought shouldn’t I?
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