I've written before about how I took my earnings from my years as an exotic dancer and invested them in the stock market. Taking all your clothes off onstage can be ridiculously profitable.
I invest in what I believe are stable, safe blue-chip stocks. These are not high-fliers but, instead, companies that have shown a steady, reliable increase in share price and dividends from year to year, the best of the so-called "dividend aristocrats."
Unfortunately, however, these safe and stable companies are often attractive targets for buy-out artists. So I have a stock I love that has steadily increased in price and regularly boosts its dividends, and suddenly some Wall Street master of the universe type wants to try to take it over.
That can mean one of several things that I don't like: (1) the takeover suitor is from a company that pays low or no dividends, (2) the suitor is from a company that's considerably less stable than its buyout target, or (3) the suitor wants to privatize the company, which means a forced sale of all stock.
So I either end up selling the stock so I don't end up owning stock in a company I don't want or the stock is sold out from under me. Yes, that can be very profitable, but that's what I don't like.
If I get out of a stock for twice what I paid for it, that means I'll have to pay capital gains taxes. More important, it means I will have to find another company in which to invest that I might not like as much or might not pay as good a dividend.
This is getting ready to happen with another stock I hold that I really like. This is now happening like at least once a year to me. Another stock that I loved was sold out from under me late in 2017 in a privatizing buyout.
I primarily hate when a buyout happens because it's like some stranger has decided to monkey with my portfolio. I alone chose these stocks, and they're the stocks I want, not some crappy replacement.
I liken this to someone suddenly approaching you when you're out in public and handing you an outfit you don't like then requiring you to change your clothes.
Hands off my stuff, Wall Street.