Yes, personally I would never buy something after it moves because since my choice is so limited I am already invested into the things that I like - if the stock does not move then I keep on buying more of it. Each time in my portfolio I want at least one stock not to move because that helps me to keep loading up with incremental cash.
I will tell you a very interesting thing. i first bought TV 18 in October 2003 at Rs 145 from then on it moved within the range of Rs 140 to Rs 150. Each time it moved to rs 240 I would think that now it will break out but it would not it would come back to Rs 150....
At that time I had a good exposure to NDTV at Rs 85 (July 2004 apprrx) and suddenly NDTV started moving up but TV 18 would not budge from Rs 160.
AT that time I met Pronoy Roy who was taking an afternoon walk with his wife "Radhika Roy" near the Taj Bengal hotel at kolkata. I walked out of the car and we started a conversation. Initially I thought that he might not respond but he seemed more then eager to communicate.
I asked him as to how he saw CNBC and he replied "CNBC is powerful” That was enough for me to make up my mind and I thought of switching since TV 18 was getting cheaper and cheaper. At Rs 115 I sold off all my NDTV and converted it into TV 18 at Rs 160 odd.
In 3 hours the stock was a Rs 120 and people who had sold out with me were now feeling the heat "takdir kharab hai 3 gghanta mei itna nuksan etc etc"
Since I deal in single transactions I had no NDTV left to sell at Rs 120 and the stock rocketed to Rs 140 in 2 weeks TV 18 refusing to move.
Soon NDTV overtook TV 18.
Now from October 2003 to February 2005 TV 18 could have been bought at Rs 160 - Rs 180. I kept buying with each stock that I sold and soon I had taken a meaningful position. Suddenly the bump up came in March 2005 and in one year the stock was a four bagger with NDTV not having doubled from a price of Rs 115.
What I want to say that value with growth is a deadly combination and once you have got that then take a position such that it makes a meaningful difference to your balance sheet.
Edited by basant - 10/Sep/2006 at 1:00am