Jump to content

Buying stock in a dying company


Recommended Posts

Has anyone here tried to buy stock for a dying company? I ask, because I figure if more people buy stock in a dying company, it would help that company out as well as those who invested. Or is it pointless to buy stock in a dying company?

Link to comment
Share on other sites

When you buy stock on the open market that money does not go to the company. That money goes to the person that was selling the share so buying shares on the open market helps the sellers of those shares. 

Now is it good to buy stock in companies that look like they are going to fail soon? That is up to your risk tolerance. I have continued to invest in mall REITs since before the pandemic through to today. When the sky was falling for others I was out there buying. I did alright on a few of my buys and am still getting clobbered on another but that is just the way it goes. I do not think that the one that is getting clobbered is going to go bankrupt either I think they will come back around here in another year or two. 

I would say the best time to buy is when others are afraid and do not want to buy. The best time to sell is when everyone wants to buy. 

I am not one to follow trends though. Buying the stuff no one wants has worked out well for me over the years but it also led me to not owning any of the big boys just because I see the trades as being to crowded. I hate to overpay. 

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • Create New...