Back Up the Truck

‘Back up the truck’ is an informal term often used in stock markets and investment circles. It implies that the investor or trader is extremely positive about an asset’s future performance and he may even go forward purchasing it. The quantity here dealt is very large and the assets can range from shares to real estate to even gold and silver.

The term is derived from a activity in logistic operations which involves a truck backing up to purchase, load and hold large quantities of useful stock. The same can be seen as an investing activity of buying, trading and holding huge quantities of assets expected to yield a better value in future.

For example, if XYZ is feeling very bullish about the performance of stocks of ABC ltd. and will proceed to buy large amount of its shares; then we can say that XYZ is backing up his truck on shares of ABC ltd.

Since this type of activity involves large amount of money over a long period of time, there are several things to keep in mind while backing up the truck on a particular asset. The investor should be able to predict future value as well as the time taken to reach a particular value. With the amount of risk involved, the anticipated return should be higher than that from other investment options.

This term was very popular during the late 90’s in the period of dot-com bubble.

Click here for government certification in Accounting, Banking & Finance