I talk about investing a lot – big surprise.
And every time I have a conversation about some of the stocks I own, I get shocked looks, and someone always says something like, "oh, I could never own that. It's too small. It's illiquid."
The emphasis they put on the word illiquid is similar to that you might put on phrases like "bubonic plague" or "Internal Revenue Service."
Clearly, "illiquid" stocks are loathsome things to be feared and avoided. After all, one of the very best things about stocks is that you can get in and out of positions in seconds if you change your mind, right?
I mean, these days you can buy and sell whole markets in a fraction of a second. So you absolutely must regard liquidity as the Holy Grail, the end-all, be-all of equity investing, right?
If you can't buy and sell gigantic blocks of shares in milliseconds, a company's not worth owning… right?
Well, wrong. This is a myth, and one you've been sold by Wall Street. I'm going to prove it to you.
In fact, when you're done reading this, you'll never sweat a stock's "liquidity" again.
Heck, you may never sell a stock again, at least until you've made ten times your money back.