Should You Ever Go All-In on a Stock?

A Fool weighs the pros and cons of making a big bet on a favorite stock idea.

Feb 1, 2014 at 10:30AM

Most investors shouldn't wait for a perfect price when trying to build a position in a favorite stock, Fool contributor Tim Beyers says in the following video.

Rather, the best strategy is to dollar-cost average. Yet Tim says there are occasions when it's OK to make a huge bet. For example, when the stock of an otherwise high-quality business takes an unfair beating. Or when the market has failed to properly value a company that's positioned to cash in on a huge opportunity.

Tim says he's looking at Twitter (NYSE:TWTR) with just this sort of lens. The microblogger recently began offering marketers methods to target Promoted Tweets down to just a handful of individuals. Deals with Comcast and Nielsen to increase the usefulness of Twitter data should help to win their business. Mix in our rising dependence on smart mobile devices for social engagement -- more than half of U.S. mobile users now have a smartphone -- and you've the ingredients for continued outperformance, Tim says.

Do you agree? Are you making any big bets right now? On which stocks? Please watch the video to get Tim's full take, and then leave a comment to let us know where you stand.

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Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim's Web home and portfolio holdings, or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool recommends Twitter. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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