On Tuesday, I sold 7,500 shares of ABT stock that I have been accumulating since 1985. My instinct told me an earnings disappointment was coming and I wasn�t wrong. What did it for me was watching the stock go sideways while the rest of the market goes up and watching it go down while the rest of the market goes sideways. Since 1998 this stock has been treading water. Past history is the surest indicator of future performance. Need I say more?
The money from my sale will be rolled into better investments. The stock market is on the brink on its next great bull run. This time, I can be a participant in the bull run instead of a spectator!
The $300K is rolled into a diverse mix of growth, blend and value mutual funds that will take advantage of the future bull market.
Am I reading this right? ABT EPS is flat? If so, one needs to look no further than MRK to see what that kind of performance portends for the future.
Gutsy move, Stinky. When I extricated myself from an over reliance on the laggard, I did it a bit at a time. Usually, making a ballsy move like you did blows up in the face of us small timers. If I had done what you did, the laggard would have gone up after I sold and everything I bought would have gone down. Hopefully it will work out for you and everything will go up. Have friends and family still suffering with the laggard and would like to see it go up so they can bail - unless they are like other laggard lovers on this board that are too psychologically attached to sell.
It is amusing that the pet name for ABT stock is �the laggard.� I�ve never seen this before, but then, I don�t spend much time on the message boards.
Yes � it was difficult to decide whether to trickle my holdings out of ABT or dump �the laggard� all at once. I puzzled over this for months, watching the stock drift down with each passing day. Then, a simple football analogy made things very clear for me. Assuming that history repeats itself, I asked myself what was more likely: ABT throws the long bomb for a touchdown or ABT fumbles the ball into their own end zone?
I think everyone on this board can correctly answer that question.
Lib-You assume I would have sold all ABT @ $54 and "wisely" invested in maybe NFI @ $54?Just figure what my tax would be as it was more like 30% than 15% when ABT was $54. I have sold some ABT each year since it was from $41- $57.80 or $57.80 -$41.I have a nice secure nest egg in COLA pensions worth at least $3 Mil and I would not risk them even in an index fund which I do not like as I never saw the dramatic rise you talk about.Admittedly,I am not a dancer like Persh & Kiki or a riverboat gambler like Aok I prefer safety first.I am ahead of power curve from many of my Navy buddies who were not as fortunate and retired as LCDR [O-4] as compared to Captain [O-6].You have no idea what difference that makes about $30,000/yr.Now multiply that over the 40 years I plan to collect that extra and I got that $1 mil back you said I loss.I am not rich but live comfortable with no debt,no alimony,no paternity suits.I have given up trying to avoid tax by holding ABT until I die but have put my money to good use and kids love me.I live a simple life and want to keep it that way. Check 6
Plute, you said:
"Admittedly,I am not a dancer like Persh & Kiki..."
50% of my net worth is in bonds, notes, cash, gold and Swiss francs. I'm not counting my home.
Now, does that sound like a dancer.
That is weak. Just because you don't like index funds doesn't mean they aren't better than the laggard. When the S&P was at 1000 you could sell your laggard for $42. The S&P is at 1300 and you can sell your laggard for $42.
I rest my case.
I don't like index funds, ie the S&P or the DJI but they have been safer and more profitable than ABBOTT LABS.
Plute says he does not like bond funds when we are coming off the mother of all bond bull markets!