I posted my stock analysis of Emcor Group Inc (EME) on February 2/25/06 right before I went long at $24.83. It promptly decided to fill the gap and head lower but I still held on because I like the long-term infrastructure play. What can I say? I'm a die-hard Civil Engineer!
Well after holding on through the next 4 months, I'm sitting on a small gain of 13.8%. Nice! It goes to show you that this isn't a stock market but a market of stocks, the trick is to select the right ones.
EME Update 2023
Talk about taking this in the shorts. This is one that got away, in a big way. I bought EME in 2006 around the time of my "stock analysis" and then sold it when the entire market cratered. I was a weak hand that got shaken out. How do I know? Just look at the long-term chart of EME!
Yes, the trick is the select the right ones for the time frame you're looking at it. I was thinking too short-term for this stock, I should've sat on it, but I didn't.
The moral of this story is to be careful with individual stocks, it's better to go with a basket of them like an ETF and then diversify your assets based on age. Despite kicking myself for this one, there are lots of other winners that I had as I learned what works best for me in building my wealth. I paid a lot of tuition to the stock, forex, and futures markets over the years and it's a valuable education only if you learn from it!
Did I learn from all my mistakes? I certainly hope so!