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by switch33
4141 days ago
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While greater risk can mean greater returns, for most investors a better strategy usually avoids some of the heftier risk in the first place. People often "fall in love" with certain stocks but that is usually not too good of a thing. When too many people hold a stock that stock can fall from too high expectations. Apple for instance everyone loves it because they make earnings all the time and beat them. The company has great returns, but it is very bid up. The stocks future earnings as a result are very highly projected, which makes the goal of reaching them harder every quarter. (same goes for some other companies like Tesla) |
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