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Be wary of highflying stocks from "summary" of The Intelligent Investor Rev Ed. by Benjamin Graham
One of the key principles that investors should keep in mind is the need to exercise caution when dealing with highflying stocks. These stocks, which have experienced a significant increase in price over a short period of time, may seem appealing to some investors due to the potential for quick profits. However, it is important to remember that such rapid price increases are often unsustainable and may be driven by speculative forces rather than underlying value. Investors who are drawn to highflying stocks should be aware of the risks involved. These stocks are often subject to greater volatility and may be more susceptible to sudden price declines. This can result in significant losses for investors who have purc...Similar Posts
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