Sometimes, life is stranger than fiction. In my years of investing in SGX stocks, I have come across many investors who persisted in buying more shares of companies whose business fundamentals turned sour. Perhaps they did not have the time to read the financial reports or maybe they just lack the competence to do a proper due diligence. So in M1 case, is it a case of catching a falling knife?
When investing in stock, never just study the trend of the share price. This is especially so if you consider yourself to be a long-term investor.
Recently, several financial bloggers purchased M1 shares on the basis that the shares had reached a “break-through” level. Whether they had made the correct decision is subjected to debate. After all, there is no right or wrong in the stock market. The only thing that matters is whether you have made money from the stock investments ......