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The Perils of Being Over-invested in Microcap Millionaires Stocks - Views on News from Equitymaster

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  • Jul 4, 2018 - The Perils of Being Over-invested in Microcap Millionaires Stocks

The Perils of Being Over-invested in Microcap Millionaires Stocks
Jul 4, 2018

A few subscribers have been disappointed with our recommendation to exit Fedders Electric. The queries we've received in response betray a recurring theme.

We thought it would be a good idea to share with all subscribers one such query we received from a Microcap Millionaires subscriber, and our expanded answer to it:

Question:

Hi Rahul

I have read the comments and questions of many irked subscribers who suffered on account of Fedders. Actually, I am also one of them. My age has allowed me that much more maturity to not throw brick bats at you to bleed you by words.

Just imagine, how many subscribers must have bought Fedders and each one has made an average loss of 50% and still they, including me, have not been able to exit. The total loss would be colossal.

I must say that I was not satisfied by your answers and always comparing with past performance of 88% success!!! Compare this to the colossal loss, I mentioned above.

I also noticed that you may have recommended stocks like Fedders out of frustration. I guess this to be so because you were not able to recommend anything for quite some time due to market conditions.

I have also noticed that you are now advocating a holding period of more than 2 years. In your reply on Aro Granite, you are talking about 2-3 years. In your last mail bag in a reply to a dissatisfied subscriber you have suggested a holding period of 3-5 years for good performance. I immediately questioned, but have not received a reply yet.

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