Opportunity Investing: How to Profit When Stocks Advance, Stocks Decline, Inflation Runs Rampant, Prices Fall, Oil Prices Hit the Roof, … and Every Time in Between

Chapter 1. The Myth of Buy and Hold

What do the companies Radio Corporation of America (RCA), Cisco, General Motors (GM), Trans World Airlines (TWA), Admiral, and Pan American Airways (Pan Am), have in common? These are or were significant American, for the most part New York Stock Exchange listed, corporations that have, in years past, risen to and then fallen from grace. Shares of Cisco, for example, rose from a price of 4 in 1992 to 82 in early 2000 before falling back to 8 by the end of 2004. GM, once the granddaddy of all corporations and the largest employer in the country? Priced at 11 at the bottom of the great 1973–1974 bear market, GM recovered to a price of 94 at the start of 2000, before declining to 31 three years later, to lower ...