While on a weekend getaway a couple of years ago, I received a message from a friend, whom I shall name “H”. H was a relatively new investor and wanted to seek my opinion on a blue chip company whose share price had fell drastically. From H’s entry price, the fall was about 40%, and H was worried about holding it.
As I did not bring my laptop or tablet along, I had to use my smartphone (and the hotel’s free Wi-Fi) to do some rudimentary research on this company. After a few rounds of reading from a small screen, the factors that contributed to the fall was due to sectorial (namely oil) and customer risks. Yet despite these setbacks, fundamentally wise the company still looked healthy, and some parameters looked promising, especially on the NAV and dividend yield.
Usually I do not do “what-to-dos” on other people’s investments, but …