Why Rule Breakers Buy a Stock That's Already "Won"
You found a great company, then watched it double before you got round to buying.
Overview
You found a great company, then watched it double before you got round to buying. So you crossed it off your list and waited for a pullback that never came.
Every investor has one. Team Rule Breakers has a rule for not collecting them, the one Fools argue with most: before we buy, we want the stock to have already gone up.
Details
Motley Fool co-founder and Chief Rule Breaker David Gardner calls this Trait #3 of six in Rule Breaker Investing: stellar past price appreciation. The idea comes from William O'Neil, founder of Investors' Business Daily, whose research on past market winners found that the best stocks rise, then rise again. Most investors build watchlists from 52-week lows; O'Neil taught David to hunt among the highs.
Source
Originally published at www.fool.com.