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Don't chase hot stocks from "summary" of The Only Investment Guide You'll Ever Need, Revised Edition by Andrew Tobias
When you’re reading about a stock that has recently soared, it’s easy to feel a rush of excitement and want to jump on the bandwagon. After all, who wouldn’t want to ride the wave of a hot stock and make a quick profit? However, it’s important to remember that by the time a stock has already made headlines for its rapid rise, the opportunity for significant gains may have already passed. Investing in hot stocks can be enticing, but it’s often a risky move. Stocks that have already experienced a rapid increase in value may be overvalued, making them vulnerable to a sudden drop in price. In the world of investing, what goes up must come down – and chasing after hot stocks can leave you holding the bag when the inevitable correction occurs. Instead of chasing af...
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