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Don't chase highflying stocks from "summary" of The Little Book That Beats the Market by Joel Greenblatt
Trying to chase highflying stocks is a bit like trying to catch a falling knife - it's a risky move that can end up hurting you. When a stock has been soaring in price, it's natural to want to jump on the bandwagon and ride the wave of success. However, what goes up must come down, and highflying stocks are often overvalued and due for a correction. Investors who chase highflying stocks are essentially buying into the hype and momentum surrounding the stock, rather than focusing on the fundamentals of the company. This type of investing is driven by emotion rather than logic, and can lead to poor decision-making and ultimately, losses. Instead of chasing highflying stocks, it's better to focus on buying good companies at bargain pr...
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