vtwillard

The Long Case for Pfizer

John, there is no logic with buying plummetting stocks. However, approximately 125-year history of the mercantile and DOW markets shows that those who bought the more 'stable' dropping stocks, and held, came out well.

One example would be IBM, both before 1947 and before 1995 (but after 1990). See the charts behind both trends.

Another would be Apple; still another, Chrysler (circa pre-1980). I'm just throwing out a few examples that I know of; there are many more.

With that said, let me say it is more intuitive than logical to buy a 'dropping stock'. You have to have a strong belief - based mainly upon future market changes, rather than the balance sheet and current analyses on management - to determine if a 'free fall' condition is an opportunity to buy. In 95% of the cases, it probably is not.

JW