I understand people who are looking to invest a significant sum of capital into a single stock, take a look at Johnson & Johnson sitting there at $109, and conclude that it would not be the best use of their opportunity cost to buy Johnson & Johnson stock right now. What I don’t understand as much is the chatter from investors that have seen Johnson & Johnson stock experience a bit of a pop in stock price and then respond by either turning off the spigot for a dollar-cost averaging program or selling the stock altogether because it gives off a vibe of being overvalued.
Perhaps my least favorite Wall Street axiom is the saying “You can never go broke taking a profit.” I find it detestable because it has a veneer of credibility–taken literally and technically, it is true. But I dislike the fact that it plays into the … Read the rest of this article!