Amazon.com, Inc. (AMZN), LinkedIn Corp (LNKD): Tilson – The 3 Most Dangerous Words in Investing

You don’t want to buy it after it’s run up a bit, and it’s very frustrating to look at a stock at $10 and then by the time you finish your research it’s at $12 and you say, ‘I missed it.'”

He said, “Any time you say that, just put that idea out of your head and start with a clean mind that basically says, ‘Today I have the opportunity to buy this stock at $12.’ If intrinsic value is $20, I should still be buying that stock, even though it’s run from $10 to $12. It’s still cheap.”

When I’ve been pounding the table on this principle of, “Get those words, ‘I missed it’ out of your head,” I’m not saying to go and pile into stocks in general at all-time highs today. What I am saying, though, is that there are still some cheap stocks out there, and many of them have moved up quite a bit. They may have even doubled in the past year, yet they could still be bargains today.

Don’t anchor on what the historical price was. Just look at what the price is today, and determine whether that’s attractive or not.

The article Tilson: These Are The 3 Most Dangerous Words in Investing originally appeared on Fool.com.

Brendan Byrnes has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Inc. (NASDAQ:AMZN) and LinkedIn Corp (NYSE:LNKD). The Motley Fool owns shares of Amazon.com and LinkedIn.

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