Visit our COVID-19 site for latest information regarding how we can support you. For up to date information about the pandemic visit www.sacoronavirus.co.za.

bs-regular
bs-extra-light
bs-light
bs-light
bs-cond-light-webfont
bs-medium
bs-bold
bs-black

Community


Share knowledge. Ask questions. Find answers.

Online Share Trading

Engage and learn about markets and trading online

FED UP

Reply
CHATTYCHAT
Super Contributor
Anyone: Care to comment? Suppose my portfolio consists of "good" shares (NOT blue chip all around), suppose I am an investor (that is NOT a trader) and taking into account that I'm still down in average 28,8% today on my initial investment - should I sell out and start fresh? Meaning: should I wait my "luck" out for a marginal chance on total recovery or abandon this frustrating scenario? AND: I do not plan holding the few "good" ones - my question is: WAIT or SELL OUT?
0 Kudos
9 REPLIES 9
moomoo
Contributor
Well if you are an investor and your intention was to invest. Then you need to stick to that and hold them for the long term. Thats what investors do.
0 Kudos
CHATTYCHAT
Super Contributor
You are right - fact is investors sometimes have to rethink about their position - and I would like to know if a fresh start at present levels enriched with new insights has a better chance to recoup the 28,2% loss and build the investment?
0 Kudos
Not applicable
Dude, as an investor you should be concerned about the earnings potential of your portfolio, not its current market value. If you are worried about hte current market value then you are by definition a trader, and your focus changes completely. Having said that, I do believe that you should balance your investment portfolio in order to be weighted in favour of companies with strong cash reserves in these times.
0 Kudos
Not applicable
What are you holding?
0 Kudos
CHATTYCHAT
Super Contributor
skaaptjop, this is a rather valuable comment - also implies that earnings (as long as I am not dependent on the income) will smooth the present negative experience? thus compensating in a secondary way for the capital loss...
0 Kudos
Not applicable
Ja, just remember that it is the institutions that drive demand & therefore price. You and I are too small to make even a dent. You will never have access to more info than an institution, so you have to go on sheer belief in your stock. I am a contrarian investor. My strategy is to stock up on stocks that have been left by institutions but that have solid cash reserves to ride out tough times. Moneyweb has a really useful tool for tracking this
0 Kudos
louisg
Super Contributor
Hi Chattychat. Do not sell the flowers (winners)and keep the weeds (losers). Keep the shares of the companies that YOU believe will increase their earnings the most in the LONG TERM. Focus on EARNINGS not SHARE PRICES. EARNINGS are the primary driver of PRICES in the long term. Keep in mind that you DO NOT have to make it back the way you lost it. Sell the mediocre and keep/buy the quality companies. OMO
0 Kudos
HateGauteng
Super Contributor
Depends. If it looks like a great depression senario is emerging, sell now before you're 80% down.
0 Kudos
CHATTYCHAT
Super Contributor
Hey, guys: Thanks - you've been talking on my level, now I understand more and have some reassurance!
0 Kudos