B Stuff et cetera

A blog about (snow)Boarding and Business school

International Fight League

Posted by forlogos on December 6, 2006

I remember reading an article many, many years ago about investing in company’s that you know and whose products you like. So when I heard that the International Fight League went public, my interest went up. The stock started at $8 and had dropped down to about $4, which is normal for IPOs. Normal in a way that the stock price adjusts to the market after the IPO and it is usually a downward adjustment.

I’d like to buy their stock but I don’t like buying individual stocks though. I’m a buy and hold investor and would rather buy index mutual funds. I’ve only bought one company’s common stock which I bought through a Dividend Reinvestment Plan (DRIP) over two years. I’m waiting until I’ve owned all the shares for a year, so when I sell I’ll only owe long-term capital gains tax and not short term gains. And I’ll only sell if I make at least a 10% – 15% profit. I’ll wait for the price to go up before I sell too. I am a buy and hold investor after all. It might be a long wait, since it’s a huge S&P 500 and DJIA company, and it’s not exactly a growth nor volatile stock.

The IFL stock will be different though. I can easily afford a block of stocks (or is it called a “lot” ? ). It’s a micro stock. I like what they’re doing with MMA and I think they have a lot of growth potential. Guess I’ll look through their financial statements 1st and make a decision then.

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