|HSL / Newsletter / Track Record|
Winners Take Care of Themselves
We originally bought Johnson & Johnson (JNJ) on July 21, 1994 at 23.19. The protective stop was at 19.88 or only $3.31/share. After buying, JNJ declined $.50/share before beginning a multi-year bull market. JNJ remained in our portfolio until we exited on a Dow Theory sell signal on September 23, 1999 at $91.13. Gross profit: +293%.
How do you get into these type of long-term winning trades while risking only a fraction of your original capital? Actually, the winners take care of themselves. They're the stocks that never decline far enough to hit our protective stop-loss! Since we use painstakingly precise entry points we keep the original risk small. If you do that consistently, you'll NEVER have a big loser! And it's the big losers that separate the successful from the unsuccessful in investing.