Let me know what your thoughts are on the above. Are you holding on to losses? If yes, ask yourself, would you buy this stock today.
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I look forward to hearing from you.
Thanks Felix — was interesting.
Thanks Felix. Good summation! I'm a new investor (1 year) and that's exactly what I've been doing.
Glad to see these are common mistakes and I'm not alone! I won't rely on hope anymore for my riskier plays.
Do you have a recommended % that growth/riskier stocks etc should make up of your portfolio? 10% Growth, 10% crypto etc?
I've tended towards growth due to the buzz from other youtubers and potential gains, however I feel I'm now moving towards more steady plays. TSLA, MSFT, FB. Thanks
Hello Mike, hard to summarise an answer in a few lines. I have a full course on this 🙂
Essentially, factor in your time horizon. The shorter the time horizon, the less risk you can take. I am presently about 70% large caps (my ‘quality/reliable’ stocks), 20% physical property and 10% growth stocks.
How do you facter in short vs long term capital gains tax when taking profit? I have a few shares in AMD and Coinbase that are doing extremely well. I'm thinking of holding until I reach the 1year mark (summer '22).
Thoughts on that strategy?
Hello Lori, that is a tricky question. Taxes create perverse incentives. You are likely best to ignore the tax question. If you have a good reason to sell, I would sell. But then I wouldn’t live in a jurisdiction with capital gains tax either 🙂
thanks for the helpful document ! I started buying stocks in June 2021 so really new investor ! Already following
your you tube channel ! So any kind of input will be great for me ! I already checked your homepage and found
your online courses you offer – but frankly speaking not sure if my poor English will be enough to follow
your courses ? let´s see ! greetings from Germany !
I, think we have to differentiate if a loss is caused by a crisis or a bad business model. Otherwise we would have to sell all our growth stocks now.
Hi Felix, Good video and refresher/reminder for everyone, regardless of their experience.
There's one additional thought that I think could also be added. It's this:
I think it's fair to say that, at all points in time while holding any particular stock investment, the investor's objective is to optimize/maximize the returns from his or her investment, consistent with their investment criteria and strategy. This means that, in parallel to what you outlined, the investor should also be asking this about each stock in the portfolio: "Is there now someplace else I can invest this particular amount of cash value and get a likely higher return than the return I now expect to get from this particular stock?. Most of the time I think the investor might conclude that he or she can likely re-deploy the investment in question into a different stock with more potential at that moment in time. If that's the case, the investor should seriously consider as one of the alternative choices to simply to cut the losses entirely in that particular stock by getting out of it completely and then redeploying those funds into a higher-potential (and maybe even safer) different stock opportunity instead of retaining the original stock in question. Basically, the experiences we have with stocks shows us that we occasionally get into some "dogs", and we should admit to ourselves that there are better places to put our money into, rather than leaving it in a "dog".
Absolutely spot on
Great straightforward advice, thanks Felix – it rings absolutely true.