liquidity, page-3

I've never really understood this obsession with liquidity, the need investors feel to be able to get out of a stock quickly, if you're foreseeing this need perhaps you shouldn't be buying part of the company?

Peter Lynch in his book 'Beating the Street' talks about how many fund managers would continually miss great opportunities because the stock was thinly traded and not liquid. Liquidity is not something he ever took into consideration. The subject of liquidity provides 'Beating the Street' with one of its best phrases,

'In stocks as in romance, ease of divorce is not a sound basis for commitment. If you've chosen wisely to begin with, you wont want a divorce. And if you haven't, you're in a mess no matter what. All the liquidity in the world isn't going to save you from pain, suffering and probably a loss of money.'

Priceless.