How much lost in a stock is acceptable for you?

[slavablueberryjam]

For a year lost, do you hold or sell a stock that has lost you money? What is the percentage you are comfortable with losing, if you believe the stock can recover?

 

[Peter]

I suppose it depends on how much faith you have that the company can return to profit.
Some companies have seen vast looses and then a few years later vast profits so for long time investors it's all about sentiment and the history of the company.

 

[eman623]

I lost half the value in some stocks during the Great Recession. Made it all back in a few years plus a boatload more.

Nowadays I tend to invest much more conservatively, but that's a function of my age and closeness to retirement.

 

[mrjurrs]

For a year lost, do you hold or sell a stock that has lost you money? What is the percentage you are comfortable with losing, if you believe the stock can recover?

If I knew that I'd be on a beach somewhere.

 

[Gaius46]

That is not a simple question to answer. It depends on too many variables but all other things being equal if the reasons I had for buying still hold I'm holding it.

A paper loss isn't a loss. You only lose money if you actually sell it.

 

[dmpi]

Fannie Mae and GM. Rode the stock all the way down to zero.

 

[gdgyva]

For a year lost, do you hold or sell a stock that has lost you money? What is the percentage you are comfortable with losing, if you believe the stock can recover?

Markets are fickle...always have been, always will be

Has the reason i bought the stock/company changed?

Has there been any material changes in sales/costs/ or management

If none of those questions bring me any grief, i will not only ride the stock price down, i will be buying additional shares

I owned Union Carbide many eons ago, when the Bhopal India accident occurred....great company, but i knew the stock was going to take a huge beating for a long while....sold immediately, and rebought it about 18 months later

Buy the COMPANY, not the stock price

 

[gdgyva]

That is not a simple question to answer. It depends on too many variables but all other things being equal if the reasons I had for buying still hold I'm holding it.

A paper loss isn't a loss. You only lose money if you actually sell it.

great answer

 

[dseag2]

I worked for Carnival Corporation before I was "retired early" due to Covid. I received stock grants each year and it was part of my severance package as well. It was $40 per share a couple of years prior to Covid. It was $14 per share when I retired. I think it has reached $21 per share since then, but shareholders sold and took profits. It is now at just shy of $15 per share.

I've held onto it for 4 years and just sold off chunks occasionally to cover extraordinary expenses. Analysts say it could go to $25 per share in the next couple of years. My financial advisor tells me to continue to hold onto it, but my patience is wearing thin. So, to answer the original question I've accepted great losses and still hold onto it.

 

[dockside]

At least 25 years ago, I bought, on the recommendation of my financial advisor, shares in Hawaiian Electric. It paid great dividends and the share price doubled. And then, overnight, right after the fire in Maui, the share price sunk to about 60% of what I paid for it originally. I sold. But, the dividends I had received made up for my loss and I was even (actually less than even due to inflation). I have no idea what the shares cost now but I think it will take awhile for the utility (the only one in HI) to recover.

 

[PoS]

Unless you need the money Id say hold on if its a blue chip.

 

[Gatsby]

For a year lost, do you hold or sell a stock that has lost you money? What is the percentage you are comfortable with losing, if you believe the stock can recover?

This seems like a backward way of thinking about it.

I wouldn't recommend holding individual stocks at all, unless you are personally involved in the management of the company. Just buy index funds; they will diversify your risk and outperform stock-picking in the long run. But if you ARE going to buy individual stocks, why would you sell a stock that has lost you money? Unless you have new negative information about the company that you didn't have at the time you bought it...nothing should have changed in terms of how you view the company. If anything you should buy more, because if it was a good buy at $30 then it's a good buy at $25, all else being equal.

 

[Ahlevah]

For a year lost, do you hold or sell a stock that has lost you money? What is the percentage you are comfortable with losing, if you believe the stock can recover?

I’m a value investor who tends to focus on fundamentals, which has not been the greatest place to be since the Great Recession. Nonetheless, I have held my own over the years.

To answer your question, as a long-term investor I’ll ride a stock into the ground if I remain convinced that it’s worth more than its current price and that whatever is ailing it is fixable. I’m not afraid to average down, as I did through the early months of 2022 when Netflix went from north of $400 to under $200 after peaking at more than $650 in 2021.

 

[PoS]

I’m a value investor who tends to focus on fundamentals, which has not been the greatest place to be since the Great Recession. Nonetheless, I have held my own over the years.

To answer your question, as a long-term investor I’ll ride a stock into the ground if I remain convinced that it’s worth more than its current price and that whatever is ailing it is fixable. I’m not afraid to average down, as I did through the early months of 2022 when Netflix went from north of $400 to under $200 after peaking at more than $650 in 2021.

Ive moved most of my assets into cash, so I wish this downturn would hurry up already! I wanna invest big in crypto!

 

[Mr Person]

Depends.

1. How does their future look as best you can surmise.

From there,

1a. If it looks all downhill, get out regardless;
1b. If there's no reason to think up or down any time soon and you are holding something you think is near a peak, sell both and balance the loss against the gain.

I mean...there are as many more considerations as you want to rely on. Maybe you don't think they'll improve much at all over the years but they pay out great dividends compared to other companies and you just happen to need the extra income in the near term. Etc.

Ive moved most of my assets into cash, so I wish this downturn would hurry up already! I wanna invest big in crypto!

Or I suppose you could gamble on a faux currency whose only real use is for purchasing illegal (drugs, weapons, etc) and grey zone (SARMs, Peptides, Kratom, etc) products, and whose only real value is the expected probability that someone else will plonk down more to gamble on it in the future.

Then again you could also just practice Texas Hold 'Em or blackjack until you're good and start spending a lot of time at the tables, at least having some fun with the gambling along the way.

But, sure, you could go with the dumbest option possible and gamble that someone else will buy the faux currency from you for more than you paid. Well, you know, unless it gets stolen, the exchange you're using collapses, or someone just plain loses a hard drive or password.

 

[CaughtInThe]

Hell, I'm down around $25,000 on 5 stocks that I just kept when I stopped day trading.

 

[PoS]

Or I suppose you could gamble on a faux currency whose only real use is for purchasing illegal (drugs, weapons, etc) and grey zone (SARMs, Peptides, Kratom, etc) products, and whose only real value is the expected probability that someone else will plonk down more to gamble on it in the future.

Then again you could also just practice Texas Hold 'Em or blackjack until you're good and start spending a lot of time at the tables, at least having some fun with the gambling along the way.

But, sure, you could go with the dumbest option possible and gamble that someone else will buy the faux currency from you for more than you paid. Well, you know, unless it gets stolen, the exchange you're using collapses, or someone just plain loses a hard drive or password.

LOL did you even know that the SEC already approved Bitcoin and Ethereum spot ETFs? Your knowledge of crypto is on par with Greta Thundberg's school attendance record, so excuse me if I dont take your "suggestions" seriously.