I used to think “good companies” were safe trades. Not sure I believe that anymore.
For a long time, buying quality names felt like the sensible thing to do. Strong balance sheet, solid management, long-term story. It felt like downside was limited.
What I learned the hard way is that:
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great businesses can still go nowhere for years
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valuation and cycles matter more than I initially thought
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price doesn’t really care about how good the narrative is
I remember holding a well-known, high-quality large-cap for months. Earnings were fine, news was positive, everyone respected the business, but the stock just kept moving sideways. Every small rally was sold into. No breakdown, no breakout. Just dead money.
That’s when it clicked: a stock can be fundamentally strong and still be a bad trade at that point in time.
I still respect fundamentals — they help me decide what to track.
But price action and structure now decide when (and sometimes if) I enter.
Took me a while (and some opportunity cost) to accept that.
Have you guys ever had experiences like this with any stock(s)?