I wanted to buy GE stock when it was $10 a share. Now I have the money to buy, but
It's up to $14 now.....is it still a good buy????
Answers
435 points
larryat36 answered 7 months ago …
If you wanted to own GE at $10.00 then that is where you should buy it. Chasing stocks up to more than you think they are worth is a sure way to ruin any portfolio. GE has been riding the recent run up with most other stocks, and should come back down with the next sell off. I feel we are soon in for a correction downward and would wait to see if you can get the stock at somewhere near YOUR price.
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126 points
jsnap001 answered 7 months ago …
The answer by larryat36 is correct. Watch the stock closely and try to get it somewhere near your price. Also, buy in increments....meaning if have $1,000 to spend and you decide to jump in and buy when the stock gets down to $12, spend only 1/2 or a 1/3 of your $1,000 so that if the stock continues on to $10 then you have the capital to take advantage of it at that price.
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368 points
ads answered 7 months ago …
The above answers are pretty accurate. You are better off to wait, as there is a good chance that it will come back down at some point before long. The economy has not really improved that much yet so this current market run up is a bit premature in my opinion and I suspect we will see it head back down to the lows that were seen a month and a half ago or thereabouts (if the economy stumbles much more it could potentially go even lower yet). So be patient and use self-discipline to minimize your costs and in turn maximize your returns.
As jsnap001 suggests, by investing part of it at a time you can take advantage of lower prices and average down your overall costs if it continues to drop lower after your first purchase, this is a technique that I use sometimes and it works well.
As far as GE in particular I don't follow GE that closely, as I tend to watch the smaller and more agile small-caps as while they can be more risky if you are careful you tend to see better capital appreciation returns with them (but you need to be careful and do lots of research as they are not covered by the media (but then again the media and a lot of analysists often get things wrong anyways)). But overall GE as a company tends to be pretty strong and is well managed (despite their ruthless attitude towards employees who do not give 110%).
102 points
rayjeriepa answered 6 months ago …
GE will continue it's run to 20-22 before it rests, so if you continue to sit on your hands they're going to stink. The economy is going to continue improving because people are not panicked like they were a shoet time ago. GE should never have gone to the $6 range and it probably shouldn't have been at forty either. This is an opportunity that if you keep waiting you'll miss all the easy money run up. It doesn't matter if you didn't jump on in the beginning of the rally, pick a rung and hold on to the ladder. I got in at $10, again at $12 and I wish I had more money to keep buying.
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