I am a new Investor who wants to buy stocks at the early stage, but most of Motley Fool’s recommendations are at their peak prices. Fools keep reminding us that it recommended winners like Amazon and Tesla early, when the entry cost was low. Where are such recommendations today?
Hi my friend. I am not currently working for The Motley Fool, but I spent a long time as a contract writer for the site. Many of the Fool’s picks tend to be relatively early in their lifecycles, often positioned as potential disruptors to the markets they address.
Looking backwards, their prices today may seem expensive, but if they are successful at radically changing their industries and profiting while doing so, then their future prices could make today’s prices look downright cheap.
The big unknown, however, is whether they will be successful on that front. Not every such company will work out, and some may even completely fail. That’s a key reason why they tend to recommend a portfolio approach. The thought process is that one wild success can make up for several “meh” results, but you can’t really know for sure who those wild successes will be in advance.
Regards,
-Chuck