Yeeesh. I did this with BW3’s (BWLD). I watched it happen again with Research In Motion (RIMM). I held them through some impossible earnings expectations. I have since turned sour on BW3’s, because their CEO can’t successfully navigate increasing chicken prices. Hard to believe while Southwest (LUV) seems to be dealing with a commodity that is seeing exponential price increases and still navigating the waters, but I digress.
These earnings announcements are a constant reminder for me that I am investing for value in the mid to long term with these plays. If I look back at my portfolio I am doing very well in this strategy when I bought Wal-mart (WMT) and Anhesier-Busch (BUD) at around 40 bucks a share. It just took them time to get to the valuations that I was aiming for. NOTHING happens overnight in value.
It’s good to remember this when we are in negative sentiment, sell the news type markets.