Bases Quote by William O'Neil
“So the first thing I learned about how to get superior performance is not to buy stocks that are near their lows, but to buy stocks that are coming out of broad bases and beginning to make new highs.”
About This Quote
Invest in stocks transitioning from a broad consolidation phase to new upward momentum, rather than those already at low points.
In simple terms: Buy on breakout, not on dip.
Key Takeaway
Timing entry with emerging strength.
Themes
momentum investing
trend following
price action
market cycles
behavioral finance
Mood
optimistic
analytical
Type
investment advice
market observation
When to use this quote
- identifying stocks after a prolonged sideways range
- entering positions as price breaks above resistance
- avoiding low‑price traps in stagnant markets
- capitalizing on early-stage uptrends
- adjusting portfolios for growth phases
Key Concepts
breakout patterns
broad base formation
price momentum
risk management
Practical Applications
- stock selection strategy
- portfolio timing
Questions to Reflect On
- How does a broad base signal future upside?
- What risks arise from buying too early on a breakout?
