Value traps: A clever disguise
A common misconception surrounds this popular term.
The term "value trap" was created to smudge the footprints of bad investors. My brilliant friend Todd Sullivan sheds light on the increasingly popular and delusional use of "value trap" in today's video. It's used to describe something bought by someone thinking that it was cheap, only to have the stock then remain cheap or decrease further. Why we dislike the term:
- This is essentially a "get out of jail free" card for making a bad investment.
- You don't need a strong thesis behind why you hold on to a stock.
- It makes it difficult to learn from one's investing mistakes.
In the future, investors should call facts as they see them and take responsibility for the outcomes, just like Todd.
Watch the video below to learn more about Todd's thesis.
To see where I have my investment dollars now, or to follow my picks, click here.
Beginner's guide to currency trading
Long-term, low-risk benefits with options
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
The giant online retailer is reportedly set to take on Costco and Sam's Club with Amazon Pantry, its foray into the consumer package goods business.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.