My holding currently records a gain, but depending on the earnings results, this gain could reverse into a loss
Time to roll the dice!
Today, I received a notification on my smartphone. As a rather boring person, this was not a reminder to go to a party or some other such fun thing, but rather a reminder to buy shares ahead of an earnings report. I was waiting for cash to arrive and wanted to invest prior to potential positive earnings which could lead to the share price rising. The downside of investing before earnings is that if the earnings are bad, I could end up with losses.
I’d started accumulating a position last year and am currently up 93% from the early positions. My later additions are also up 37%, but of course, without the additional margin of safety, these short term gains can evaporate with a single bad earnings result.