Good Knight And Good Luck — With Your Investments
May 30, 2006 at 8:46 am
Washington Post business columnist Jerry Knight wrote his farewell piece in Sunday’s paper. He offered thoughts on local stocks, saying “I’m getting ready to buy my first stock in a local company.” Since we’ve been looking for tea leaves indicating whether he would pump or dump his employer, we eagerly read the column. And the verdict? Take a look:
For me the issue is not whether to buy media stocks but whether to sell the Post stock that’s accumulated in my 401(k) account. By any objective standard, I own too much of my employer’s stock, which is the most common investing mistake most of us make. Post stock is outperforming its local peers primarily because of the company’s Kaplan education division, which now generates more revenue — and growth — than the newspaper. Analysts rate most of the local media stocks “hold,” and in the case of the Post stock, I think they’re right.
Can’t split the difference any better than that.
Charles Lattan said,
May 30, 2006 @ 8:25 pm
Jerry Knight will be missed. A newsman’s newsman. Old school sensibilities, and not the least bit reticent to say he’s ready to play the market. Great timing for him as well. No better time to start gambling — er, gaming — in the market when everything is clearly in the “buy low” category. Good for you, Jerry!
As for the Post stock, it must have certainly jumped at least a point when Bob Levey, who kept announcing his departure but continued returning, finally was put out of our misery.