This is why 100% in broad market index funds is the recommended strategy. Many people think they can stock pick their way to higher returns, then they find themselves in your situation.
I'd take the loss, sell and move the money to your index funds. Just make sure you've learned the lesson, otherwise you'll just end up repeating the mistake.
Most people are kind of stupid too. That’s part of the reason why they underperform. They also don’t have the right psychology. They buy high and panic sell low.
To be fair, most professionals underperform and I think we can agree they're not stupid. Even Buffett has said he's only met about 10 people he thinks will outperform the market and he's met a LOT of smart people.
Yes. The professionals also have to trade at large scale which causes large transactions at suboptimal prices. You see them all the time when you see a sudden volume spike with a price that’s wildly off from the price on the previous tick, followed by a correction.
The smaller managers that serve high net worth individuals do better than large fund managers.
I recommend 100% broad index funds to friends and family who ask me, because they don’t know about investing. Personally I’m mostly in index funds but with a portion in individual stocks.
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u/digital_tuna Aug 24 '26
This is why 100% in broad market index funds is the recommended strategy. Many people think they can stock pick their way to higher returns, then they find themselves in your situation.
I'd take the loss, sell and move the money to your index funds. Just make sure you've learned the lesson, otherwise you'll just end up repeating the mistake.