Never “Marry” a Stock
By Saghir Aslam
Irvine, CA

 

(The following information is provided solely to educate the Muslim community about investing and financial planning. It is hoped that the ummah will benefit from this effort through greater financial empowerment, enabling the community to live in security and dignity and fulfill their religious and moral obligations towards charitable activities)

 

A common error foe many is to “fall in love with the companies that they worked for and retired from.

The investor stays with the long position through thick and thin. These are often high potential corporations which have not realize their dreams.

The stock may not have performed well for several reasons:

1. No earnings – new companies often take a long period to pay off the underwriters.

2. Poor management – the finest inventor or scientist can make a poor CEO.

3. Poor product – it may be ahead of its time or even falling behind as newer technology moves ahead of it.

4. Insufficient capital – unable to fund plants and supply needs.

5. Legal problems – suits from disgruntled employees or lenders or patent infringement problems.

Sometimes luck will hold and the company will be brought out or recover on its own. This may take several years.

Many times the hard reality.

(Saghir A. Aslam only explains strategies and formulas that he has been using. He is merely providing information, and NO ADVICE is given. Mr. Aslam does not endorse or recommend any broker, brokerage firm, or any investment at all, or does he suggest that anyone will earn a profit when or if they purchase stocks, bonds or any other investments. All stocks or investment vehicles mentioned are for illustrative purposes only. Mr. Aslam is not an attorney, accountant, real estate broker, stockbroker, investment advisor, or certified financial planner. Mr. Aslam does not have anything for sale)

 

 

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Editor: Akhtar M. Faruqui
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