Doubling down. It’s a phrase you hear thrown around by a lot of pundits, be they financial, political, or social. The phrase comes from blackjack, but is now used with an almost entirely changed meaning. In its current, common usage, it means spending more capital on an idea that didn’t work out the first time. If that sounds like a bad idea to you, congratulations, it is. Could it be that there is a related lack of penetration in the minds of those who advocate the idea and those who so thoroughly mangled the meaning of the phrase that now represents that idea? I’ll leave that question alone for now.
Regarding stock, “doubling down” is sometimes the right move, but not as often as doubling up. Studies show, and my personal experience in the market confirms, that one does better to clip losses and let profits run. Contrary to the axiom, a great many investors have gone broke by taking profits, because a great many investors have taken the money from their profitable investments and moved it into their unprofitable ones.
The stocks on today’s list are doing well. They are small, but not in their infancy. You will likely have heard of these companies, and it may be that you already own shares in one or more of them. They are on the list because their prospects are improving. They are still risky, but they are no longer long shots. If you’ve already dipped your toe, it may be time to wade in up to your knees, or even your waist. It is NOT yet time to dive in head-first, by which I mean, you could still lose all your money in these stocks, so don’t invest more than you can afford to lose.
That seems like enough of a disclaimer for today. Let’s get to the stocks.