On Investing: The Necessity to be Right":
https://www.youtube.com/watch?v=5mhxni123lgInteressante Wochenendlektüre von scherf.com
THE PROPER RISK/REWARD RATIO
It's not enough to have a potential 100% upside and a 50% downside, ... that's a horrible Risk/Reward ratio and a recipe to lose a lot of money. In our analysis we mostly seek investments that have a potential downside of approx. 20-30%, but which also offer a possible and achievable 1,000% return over time, or which have at least a 500% upside. Otherwise it's not worth getting into a position. And our track record for over 25 years is showing us that we've been right over and over again on numerous investments, even though there are only a few candidates of interest each year...
....just as an example perhaps Epoxy, Inc. (EPXY) which was and still is a calculated speculation and which soared by over 500% within just a couple weeks in July 2014. As explained previously, the potential market cap for the stock is over $2 Billion which is more than $10/share, and which makes the stock at just 2 Pennies a bargain. True, the company has to execute on all levels and it may take several years to reach such a market cap, but the company has an excellent calculated potential to become the next "Facebook" in their market segment. We've already explained here why and all the components that make Epoxy (EPXY) a so far undiscovered gem. It makes it a great Risk/Reward ratio and the company is not going away as it is expanding its user base and the businesses who are integrating the EpoxyApp, ... and so forth.
http://www.be24.at/blog/entry/695260/...ight-dietmar-scherf/fullstory