Split Allocation Strategy for Microsoft Stock Around Earnings

3 months ago

Parkev Tatevosian, CFA

"Now should you buy before or after earnings? uh I don\"t see any reason to rush in and buy before earnings. I also don\"t see any big downside for doing that. And when I\"ve encountered these situations before, the advice I give to people that ask me is what I would do is if I\"m thinking about spending, let\"s say, $1,000 for Amazon, uh why do I keep saying Amazon when talking about Microsoft? I don\"t know. Anyways, the purchase allocation, I would take the $1,000 and split it into 500 and 500 and I would buy 500 before the earnings announcement and 500 after the earnings announcement. And that way, I reduce the risks on two sides, right?"

The speaker discusses a tactical approach for purchasing Microsoft stock ahead of the earnings announcement. He suggests splitting the investment capital equally between buying before and after earnings to mitigate the risk of missing out on a strong earnings-driven rally or suffering a post-earnings decline. His advice is rooted in balancing potential upside with downside risk.

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