I made my first stock purchase 5 weeks ago. I bought 28 shares of Acme United Corp (ACU). The stock was selling for 1.4 times book value, it had increasing earnings for the past years, had recently bought another company that will increase its competitiveness in its market, and it also invested in a new facility that will end up making room for growth and save on costs.
I believe in the company. They sell a solid product in office supplies and first aid kits, and they are selling cheaply in my opinion. But...
One week after I bought the stock, the COO unloaded some shares, and the price went from $17.25 to the mid to high $16's. It ended yesterday at $16.93.
I still believe the company. I know I bought a good company and my only regret is that I didn't have the luck to have waited another week for the price to drop before buying it.
I'm still learning the ropes of value investing. I think I have the chops to be good at it, but I'm still putting together the pieces in my mind. The reason I'm on here is because of a doubt. I've recently come to the realization that value investing a tries to only ensure two things: a big return or a small loss.
The things I'm unsure of are 1) can ACU actually give me that big of a return and 2)should I sell now if I think I can find something with a bigger return?
What should I do?
