Three Strikes – You’re Out!

Jeff Thomas 321gold



In the nineteenth century, the Americans invented a new sport – baseball. At one time thought of by us Britons as a sort of “poor man’s cricket,” baseball eventually became an international sport and, at this point, in virtually any country in the world, the exclamation, “Three strikes – you’re out,” means to all and sundry that the individual in question is finished for the time being.



And the phrase is sometimes used in investment circles. One investor can be heard advising another, “Don’t buy that stock – they’re underfunded, have poor management and an unsustainable business plan. You’d have three strikes against you even before you started.”



If the investor receiving the advice is wise, he would, of course, avoid the stock as he would avoid plague. The odds of success are so poor that, although there might be some chance of success, the odds are so thoroughly stacked against him that he’s almost certain to lose his money.



Cont....