Wednesday, 30 December 2009

Cree, Inc 10-Year Chart

Here is an example of a stock which languished for 8 years before finally breaking out this year. If you bought this stock in March 2001 for $20, it was still $20 in March 2009. You made no return in those 8 years, and missed out on other potential winning stocks in the market. To top it off, the value of the dollar has gone down which eroded your purchasing power. $20 in 2001 won't buy what $20 in 2009 will buy. So you would have been losing wealth even though the price was the same. Now, the price has increased to $55.28 as of today's close, so you would have made enough to cover inflation and made a pretty decent profit after 8 long years, barely. Why not invest your money somewhere else where the action is during 2001-2009, and then put your money into CREE in 2009?

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