3 Reasons to Think Twice Before Buying This Cruise Ship Stock

Warren Buffet has a few memorable sayings about buying stocks when it is uncomfortable to do so. Around the bottom of the Great Recession in 2008, his message to investors was to resist the temptation to wait until the all-clear sign before purchasing great companies.

"What is likely is that the market will move higher, perhaps substantially, well before either sentiment or the economy turns up," he said. "So, if you wait for the robins, spring will be over." I thought about that statement while indexes soared in the past few weeks.

Cruise ship giants haven't participated in the rally. In fact, Royal Caribbean (NYSE: RCL) is still down over 70% since the start of 2020. Yet while pessimism can be an investor's best friend when it applies to a strong business like Royal Caribbean's, waiting looks like a better move than buying this stock today. Here are three reasons why.

Source Fool.com