Getting over price sensitivity....
posted on
Oct 21, 2016 06:30PM
I know how much everyone here enjoys (sic) my musings.....so I thought I'd share something that I've been mulling over the past couple of days.
Any objections? No? Kewl :-)
Pretty much everyone has heard about averaging down and about how people react almost irrationally with stocks because of price based fear. But normally, when people are purchasing things, they are happy and excited when the price for something drops.
The best example I can think of is coffee. I drink tons of coffee, at least 3 or 4 cups a day....and sometimes 8 or more. But I'm not much of a connosieur when it comes right down to it....I drink a lof in instant. My preferred brand usually sells for between $6 and $7 per jar, but it goes on sale every few months for less than $3, and sometimes as low as $2....and when that happens I pick up 4 or more of them. If i go back and its still on sale? I pick up a couple more and add them to my supply
That's coffee.....and its smart behaviour. Why pay $6+ when I can fill the cupboard when its selling for $2. Of course with coffee its easier, because I know with almost 100% certainty that the price is going to go back up to $6+....with stocks things are a bit different.
Well....I think that RVX is worth at least $5 per share, and more likely closer to $10. Anyone is welcome to disagree with me, but I have "decided" that RVX is worth at least $5 per share. I put decide in quotes becaue at its root it means to "cut off from"....to eliminate all other possibilites.
Its incredibly liberating let me tell you....and with volumes so light and the company being so quiet I have to say "confidence is high". Now if there was some chop shop hyping RVX, or if there was chatter all over social media (other than my own of course) then I would not be as confident.
But with things as they are....if the PPS stays around this area, or if it drops even....I don't care. Being confident that its worth $5+ means even $3 would be cheap, so I'm gonna keep buying.