I have spent my adult working life in a world of ‘pump and dumps’. I have chased a few so can smell them now. In the long run, every asset has been pumped by a ‘few’ and ‘dumped’ on many.
At 45, I prefer not to get TOO close to anything I don’t control.
In a bull market, the last thing you need is a ‘special situation’. In a bear market, the BEST companies ARE special situations…
I have always preferred ‘light’ investing terms like ‘The trend is your friend’ over the heavy term ‘Special Situation’. The trend is you friend has made me money In $RAX $INTU $OPEN and $LULU and $ARBA this last year, even though they were not special situations 40-80 percent ago when I was writing about them and buying them.
If you are beginner investor, you don’t have time for ‘special situations’. Look at this very simple ‘two post’ explanation of a recent ‘pump and dump’ by Tom Brakke.
Warren Buffet has time for special situations. You have time for your family and your job.
Keep it simple.