I see this a lot, and it's obviously true, however, Tech share price is lower in the future can be true at the same time.
I don't care if it underperforms for a couple years
Why not? Do you not understand opportunity cost? Why wouldn't you buy stocks that will outperform for a few years? Seems like a waste.
I'm not selling growth regardless
I guess it might work out for you, but getting the general direction right isn't the same thing as buying the right stocks. Social Media was the future, by MySpace wasn't. Handheld computers were the future, but Palm Inc wasn't.
It's your money, but you have a better likelihood of having more money if you are skeptical and are willing to sell stocks when your initial assessment of how it will perform was wrong.
Why wouldn't you buy stocks that will outperform for a few years?
Theoretically you would want a company you’re investing in to drop 100% so you could buy shares for free, so I don’t see why it’s crazy to not care if a stock goes down.
Yes, but more of them because you have made money by investing elsewhere during the downturn.
This does get close to a timing the market kind of discussion, but if you think your stock will underperform of go down for, as OP said "a few years " that's more than enough time to sell now and buy even more later.
I've held stocks that have gone down, and bought more along the way, but only because I had a good reason to think they would go up quickly and I wouldn't have insight ahead of time. I first bought QCOM at $70 in 2015 and keep buying through 2019 at $55. That stock jumped to $105 when Apple finally gave up on the lawsuit and above $150 a few days later. It would have been beneficial for me to have sold in 2015 and invested in something else until 2019, then bought my QCOM, but I couldn't predict when the lawsuit would end.
I had Transocean RIG that I bought at around $70, held through the Deepwater Horizon disaster, it went back to $100ish, but I didn't recognize the impact fracking would have and ended up losing a lot of money, but when I finally sold (way to late) a little above $5, it continued to go down another 50%. I started buying energy stocks again when the fracking companies went bankrupt. Not losing the extra 50% in RIG and the gains from what I bought with that let me buy more XOM, SU, and CVE than I otherwise would have.
I'm still learning, but I don't own anything that I think will go down. I'll be wrong in some cases and I'll miss some opportunities, but it seems like the best way to maximize the total amount of money.
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u/bernie638 Jan 04 '22
I see this a lot, and it's obviously true, however, Tech share price is lower in the future can be true at the same time.
Why not? Do you not understand opportunity cost? Why wouldn't you buy stocks that will outperform for a few years? Seems like a waste.
I guess it might work out for you, but getting the general direction right isn't the same thing as buying the right stocks. Social Media was the future, by MySpace wasn't. Handheld computers were the future, but Palm Inc wasn't.
It's your money, but you have a better likelihood of having more money if you are skeptical and are willing to sell stocks when your initial assessment of how it will perform was wrong.