The Only Time You Lose Money In The Stock Market
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- Опубликовано: 11 июн 2023
- The Only Time You Lose Money In The Stock Market
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"You never count your money whilst your sitting at the table."
- Kenny Rogers
There’ll be time enough for countin’ when the dealing’s done
😄
What a great song
You spelt Kenny Powers wrong
Funny I alwys took that line as, you don’t want get shot/robbed/jealous losers, just pick it up and split. But yes, it applies here too. Don’t count it cause you’re still gambling. Haha
This is why it's dumb to tax earnings on stocks (as some are proposing) instead of just the capital gains
In many European countries . There already are tax earnings on stocks
@@Churros1616 that sucks for them
@@Churros1616 They tax Capital Gains, but I believe the OP was talking about the ridiculous proposal of taxing "Unrealized Gains".
Why? Because in our current tax system the wealthy will just hold on to stocks forever because they have the ability to use their stocks to get liquid cash without selling.
They want to tax on unrealized gains which is crazy talk to me. How it would ever be accurate is beyond me and it's just a other grab for our money by a government that has been spend crazy.
This is amazing. “HOW TO BUILD WEALTH”
The first step to building wealth is figuring out your goaIs and risk toIerance - either on your own or with the heIp of a financiaI pIanner, and foIIowing through with an inteIIigent pIan, you wiII gain financiaI growth over the years and enjoy the benefits of managing your money.
I am fortunate I made productive decisions that changed my finances (gathered over 1M in 2years) through my financiaI planner. Got my 2nd house in Feb, and hoping to retire soon. Give this a try and attain good-returns.
researvh this in fuII, if you care..
researvh this in fuII, if you care.
FinanciaI-Advisor REBECCA MARTIN WATSON
there are more stories of those left holding a bag, companies going down to 0 value .. wework, bbby / it's a rigged casino
I’m considering rebalancing my $2M portfolios, So I'm curious about the best strategies to hedge my portfolio against market downturns and generate profits?
Having an investment advisor is the best way to go about the stock market right now. I was going solo, but it wasn't working. I’ve been in touch with an advisor for a while now, and just last year, I made over 80% capital growth minus dividends.
Please can you leave the info of your lnvestment advsor here? I’m in dire need for one
It's crucial to have a well-thought-out strategy and not make impulsive moves based on short-term market fluctuations. Patience and a long-term perspective are key. You should consider a market expert to guide you.
@@PotBellyPete69meow!!
Just buy what Warren Buffett buys simple
if you going to tax me for my gains, you need to give me a credit for my losses.
YES
And, as I'm sure you know, they do. Paper losses, also known as mark-to-market, are exceedingly real. A real investor would say, never let a loss go to waste. Tax harvest that loss.
@usafa1993 if the government wasent trying to tax money we already paid tax on when we worked for it, people wouldent have to play tax games
They do. Selling at a loss reduces your taxable income, so you pay less taxes as a result.
It’s called Tax Loss Harvesting
Best quote "It's not about timing the market, it's about time in the market".
Didn't make any sense until I was in the market a few years now its crystal clear
@@shadowslayer7574 it's quite straight forward lol
Imagine dying before any gain because you bag held in the nikkei 225 (inflation adjusted). You're kidding yourself if you think stocks are anything but a ponzi scheme.
It depends on the market you’re in. This is dangerous advice in some markets.
@@martinlutherkingjr.5582 the time horizon for each investor can be divided into 35 or 40 years of accumulation (age 25 to 65), plus another 30 or so years in retirement. We are looking at 65 to 70 years. Historic performance of the stock market over any 60 year period shows an upward trajectory. If an investor does not have the emotional constitution for the up and down gyrations. They should stay out of the stock market.
Like people talking about their equity on their home - equity is just on paper until you sell and have to spend it to live somewhere else.
The home equity is still part of your net worth.
Dave uses it all the time when he chats about "everyday millionaires."
@@15KHPCLUB Home equity is assumed value. Not locked in value.
@@Answers721 Then Dave shouldn't be factoring it in.
@@15KHPCLUB Understand that. Just pointing out equity is paper, not liquid. Stock paper gains rightly so aren't included in net worth, so maybe equity on homes is included just because they don't change daily and accounting is easier.
@@stevenporter863 Stock is included in your net worrth.
Stocks will rally but I know better, macro shows the economy is yet to fully recover. I have been holding stocks to sell at a profit at this time but it is looking like a bull market the rest of 2023. I am in a fight to hold or to sell. I’m up to 297 grand from a low of 250 thousand last year.
Stay in the market and sell only if you need those funds. I got laid off and it has been difficult getting another source of income, glad I was investing when I did and of course with guidance from a wealth manager don’t listen to naysayers. I am making bank and the penalties for drawing from 401k to reinvest are nothing compared to the amount of wealth I am now in possession of with my family.
I have saved myself from all the hassle that the chaotic market causes. These days the best way to come into the market space is seeking guidance, due to side hustles i can’t handle my portfolio so i just work with Loren Lena Walker.
a CFA i came across via a recommendation from one of these RUclips retirement coaches. It’s been smooth since then. Cliche as it may I have made a mark up of 70% in profits investing 350k under her. It helps not to be worried about your portfolio every minute of the day.
Purvis, Thanks for the share! copied and pasted full name on my browser, effortlessly found her site, very professional. I got some feedback hope to speak on the phone soon.
This didn't age well
Wealth transfer often occurs during market crashes, so the more stocks drop, the more I buy. Meanwhile, I'm focused on making better investments and earning more as recession fears increase. Apparently, there are strategies to triple gains in this current market. I read about someone who made a profit of $350k in just six months. It would be really helpful if you could make a video covering these strategies.
Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money or you could hire a financial expert.
In my opinion, it was much easier investing back in the 60s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
My partner’s been considering going the same route, could you share more info please on the advisor that guides you?
Sharon Lee Peoples maintains an online presence that can be easily found through a simple search of her name on the internet.
I searched her up, and I have sent her an email. I hope she gets back to me soon. Thank you
The crash was fantastic. You could buy stocks for 20 cents on the dollar. Citigroup was selling for 1.50. P And G was selling for 1 dollar. Etc. It was a chance of a lifetime to buy.
Yeah, I thought that was where this was going. For those of use with time to spare, downturns are awesome. It's like a stock sale. 80% percent off!
Yep, I feel like I made out like a bandit. I bought a house right at the bottom of the trough, and was buying up stocks and mutual funds like crazy. The house I bought for $149K, and paid off in 5 years sold last year for $820K, because I was sick of dealing with 2 houses.
I am a Nurse and have been investing for a few years. I have reached a point where I could benefit from financial advice to improve my $160,000 portfolio, which seems to be stagnant, and to maximize the return on my investments.
You didn't provide detailed information about your portfolio makeup. However, I recommend seeking guidance from a financial advisor for a well-informed portfolio restructuring.
De-risk your portfolios, shore up your core holdings, and take some profits while balancing your portfolio allocations. I’d also suggest you go with a managed portfolio, but even those don’t perform so well, so it’s best you reach out to a fiduciary financial advisor to guide you, that’s what works for my wife and I. It's been 6 years now and we've grown our portfolio to $1m.
Your advisor seems competent. Could you share how I can reach out to them? I've recently sold some property and i am interested in investing in stocks.
I work with *Jennifer Leigh Hickman* You could look her up yourself, if you want, she’s proficient
Thank you for the lead. I searched her up, and I have sent her an email. I hope she gets back to me soon.
I'm going through one of the hardest times of my life right now. lost a lot of money investing in start-up businesses. I'm honestly simply perplexed right now about how other folks in the same market are making over $200k in gains in a matter of months.
Sure, a lot of people are making six-figure profits during this downturn, but most of those who effectively implement these tactics have extensive knowledge of the market.
I agree, based on personal experience with an investment advisor, I currently have $985k in a diversified portfolio with exponential growth. It's not only about having money to invest in stocks, but you also need to be knowledgeable.
Please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
Alicia Estela Cabouli* Her honest approach gives me complete ownership and control over my position, and her rates are incredibly affordable given my ROI.
@@judynewsom1902judy lets discuss this over dinner...
How do I go about this.. Lately i got interested to invest in the financial market but have no idea, How does it work please.
As a beginner, it's essential for you to have a mentor that is verified by finra and SEC to keep you accountable. I'm guided by a widely known crypto consultant Stacey Macken
Wow, I'm supprised Stacey Macken is being mention here. I started off with 5K.... Now with massive portfolio highly recommended...
I'm proudly a beneficiary 💯 Thanks to my co-worker (John) who suggested Ms Stacey Macken..
I met Stacey Macken at a conference in 2018 and we have been working together ever since.
Her reputation already speak for her $ 150K last Month.
This is an oft cited example and, as is the case with many of these things, it is misunderstood. Compounding stipulates that any drop in value is a form of loss, a 50% decline in value requires a subsequent 100% return just to restore the original balance. For a more realistic context, that is 4 straight years of 20% returns. The NASDAQ hit 3940 in 1999 and didn't get back to this number until 2013. Some investors have time horizons so short they don't buy green bananas. If you don't have an infinite length of time over which compounding can resolve a sharp decline, you will likely have lost something
Great point!!
Thank you for this comment. The "$1000 becomes $100K" fantasy is just that, a fantasy
I invest some no matter the state of the market. If it is up, I buy, if it is down, I buy.
That's how I deal with what you talked about.
Often times, a dip is a buying opportunity, not a time to take a loss.
A dip is always the time to buy, the only time.
Buy low, sell high
I keep telling people this. Stocks go up and down. You haven't gained or lost until you sell.
If you gotta keep telling people you must be a financial advisor or something or all your friends are dumb as rocks😂
Warren Buffet loves dividends. When you get dividends then you definitely make money.
great advice
Or until that stock doesn't exist anymore 🥴
MMTLP rn
We need people like you on the Fear and greed side 🎉
I sold off 2 that I can't buy back because they went down so far. Made a little money on one, lost a lot on the other compared to my investments.
Most of us aren't good investors...we don't care much about the underlying assets we just buy as stocks go up and down. As long as an algorithm can do the thinking for me, I don't have to. It's insane how many large investors fail to do due diligence these days
It used to be that if an investor gets caught with a stock that drops to zero was that the c-suite was committing fraud. Now it's either we don't care or everyone's committing fraud
Buffett also makes hundreds of millions annually in the dividends that Berkshire’s holdings pay…which is collected in green paper as Dave Ramsey would say. You’re less likely to sell a stock in an economic downturn if the shares you’re holding are paying you a massive dividend that you’re getting cash in hand.
Sucks when a company goes away. Then it is lost. Diversify!
Do you think Apple tesla and big phone companies are going away?
@@yendothegamer9880No company will last forever.
It's not a sports match. Once that clock hits zero or the final out is made you've either won or lost. You choose when you wanna end the game with stocks.
You don’t decide, history will decide when the game is up for US stocks and the dollar collapses.
Haven’t thought of it like this before
I did thisi was down 93 percent at some point it is slowly all coming back
This is the only way you can think of things in the market we invest in….
Yeah he lost 10M...
Dont start thinking of it like that. Whether you realise the gain or loss, they are still gains or losses.
ALWAYS use a cash account.
so i haven't lost 50k in ftx, good to know
apparently ftx is supposed to come back so who knows
Yeah not lost until you sell .. 😂😂😂
Took a massive loss when WKS went fro. 29 a share to instantly 18.00 a share, few months got out @ 9.80, glad i did almost a penny stock now 😂😂
No, you were forced out.
you don't lose it til the divorce is final
Yeah that’s true for now. Just because it’s down now doesn’t mean it won’t go back up in 20 years lol
Buying a stock is easy, but buying the right stock without a time-tested strategy is incredibly hard. Hence what are the best stocks to buy now or put on a watchlist? I’ve been trying to grow my portfolio of $260K for sometime now, my major challenge is not knowing the best entry and exit strategies... I would greatly appreciate any suggestions.
The market is volatile at this time, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
I agree , I assumed I had a hang of the market at first, I gained $50k one year and I was super elated, not until I stumbled upon a portfolio-adviser whose been guiding me since the market's been sham after the pandemic, to my utmost surprise I netted a whooping $280K during this dip, that made it clear there's more to the market that we just don't know
@@ThomasChai05 Is it possible to get in contact with someone like that?
I am guided by *Mary Onita Wier* . I found her on a CNBC interview where she was featured and reached out to her. She has since provided entry and exit points on the securities I focus on. You can look her up online if you care for supervision.
This recommendation literally came at the right time, I’m down by $7k in stocks this week alone.. its crazy! I just looked up Mary online and researched her accreditation. She seem very proficient, I wrote her detailing my Fin-market goals and scheduled a call.
That's true. For instance I'm still holding my Enron stock.
It’s taxed by the state you live in and at the end of the year it’s taxed as income that’s overkill for those of you that have retirement accounts will sadly find out too late.
Great point. It’s not timing the market, it’s time IN the market.
Have a friend that has money in stocks and I said the same thing… Until you sell it isn’t your money it’s just numbers
Anyone who doesn’t know this has no business being in the stock market.
What are they supposed to do to preserve their purchasing power than? Why exclude them?
Seems simple. But wish I knew this before losing most of my money in 2022.
I'm in the baby step one phase. I've been reading your books. At first, I thought you were slightly crazy in regards to your stance on credit and debt. But after stepping back and logically looking at our budget, I can see what you're saying pretty clearly. This is our first month seriously budgeting! Wish us luck
I need to keep this one on repeat. It’s so hard NOT to freak out when your stocks drop!!!!
Began my retirement funds at the age of 38, primarily utilizing my hard work, dedication and with the assistance of my financial advisor, *Christy Val D'souza* . Now at the age of 48, I am delighted to say that my retirement income has grown enough to take me through my later days in life. So don't hesitate to take action when you can. Remember, it's not about achieving wealth quickly, but rather about building wealth consistently and persistently.
That is exactly my point, you need the assistance of a professional in whatever investment you want to embark on. For me it is a lot safer that way.
Yes, just as I said, *CHRISTY VALLEN D'SOUZA* is the best stockbroker, investment portfolio manager and financial advisor I know. This is because I have tested her services firsthand. She has never failed me or anyone I recommended to her. She is very trustworthy.
look up her complete name on the web, confirm her details and get in touch with her.
It's so true and I keep telling my friends the same "You haven't made a loss until you sell it". Some people need to understand this because if it loses value during your possession doesn't mean it doesn't go back up again. It's not a loss, it's now on discount.
When the market is stretched way about the 200 day moving average sell and move to cash and earn interest. Then when the market is stretched way below the 200 day moving average get back in. Why do we tell people to hold onto stocks in a bear market?
That's what I tell people about houses. You are not making money on the house until you sell it. Until then, it's meaningless.
You are right but it gets even deeper than that. A house you live in is costing you money each month. Sunken costs that will not be recovered or only a fraction when you sell (maintenance and repairs, furnishings, lawn care or lawn tools, renovations, mortgage interest, etc). Because the numbers are so big most people do not account for these costs, which can be tens of thousands or more over the time period. Return may be a fraction (if anything) compared to what just buying and selling price would lead most people to believe.
Had a very smart Business teacher in Highschool that always talked about stocks and trading. One of the keys saying he would always say was "It's al on paper" meaning the price goes up and goes down till you sell, its all on paper.
“U can always tell who’s skinny dipping when the tide goes out”
Warren
genius, i did not know what unrealised gains and losses are, until this dude tells me.
That’s a very nice and fairytale way to see it isn’t it
😂
I hate when people say that ... Until I sell it ...
And it'll come back up ... Look how many companies go out of business.. that's not coming back up ....
Yes. But Dave doesn't do individual stocks. He sticks to things like the VOO/S&P 500
Warren Buffet understands how to do a Fundamental analysis of a business. He doesn't invest in businesses that will go bankrupt.
That’s why Mutual funds are important
@@elcheekoful S&P 500 is the name of the index and VOO is an ETF following it, they're not 2 separate options unless you trade derivatives
@@Firstname_Surname oh ok. Yeah that's what I meant. I was trying to give VOO as a example.
🃏 The live casino games are my favorite. The blackjack tables especially. Feels like the dealer is right there with you
*Great video! i really have a question For someone with less than $10,000 to invest, how would you recommend we enter the crypto market? I am at studying some traders and copying their strategy rather than investing myself and losing money emotionally what's your take on this approach?*
VENTURING, into the trading world without the help of a PROFESSIONAL, trader and expecting profit is like turning water into wine you would need a miracle, that's why i trade with Mrs. Maria Hamilton, her skills set exceptional?
*This is not the first time i am hearing from this woman and her exploit trading world but i have no idea on how to reach her*
*I'm a beginner how can i reach out Maria Hamilton?*
@@user-dt4wl7nv7i *she often interacts on telegrams, using the user name below*
@MariaHamilton1...
In 2008 my portfolio's worth went down by half. But by 2012 I had it all back. By 2016 it doubled again.
Then you took another haircut in 2020 and will likely take another one shortly. Your "$1000 becomes $100k" fantasy is busted
@@dungeonmaster6292 IDK what kind of crack you're smoking to think I said I turned $1000 into $100k. I didn't say that. I am rich though. But I don't think it's worth convincing some internet idiot who already can't tell fantasy from reality. Stop using "Wisdom" as your dump stat.
@@dungeonmaster6292 You seem like youre a little jaded. Just because you lack control over everything doesnt mean it is busted.
Gotta remember this isnt D&D where youre the dungeon master with all the control.
Buy low, but only sell what you need to live on.
Thank you. People keep saying they made or lost money. NOT UNTIL YOU LOCK IN THE GAINS OR LOSS!! Most people cant even understand this concept and yet they try to make money in stocks. Thats why most people lose money
And what do you hold instead? The US dollar? A currency guranteed to be debased?
Don't knock on stocks . All the wealthy people have them and they will always eventually give you gains..
Better than leaving it in a bank and losing value every year due to inflation.. especially in this administration...😂😂
@@customsolutions7167 I agree. Do what the rich does. Some stocks could fall and never recover so the easiest is to buy the indexes
Mark to market accounting has entered the chat 😅
Josh Jones! This guy understands. Everyone Alice is a babe in the woods. Mark-to-market will crush you.
Learned that lesson from my dad. I made money. He said where is it? Then I was like "Oh.."
It was a GREAT LESSON from my dad.
Can I apply this to crypto?
The problem with Crypto, is that the price is really subjective to the hype, instead of something of value. Normally for a company’s stock to go up, it depends of the company’d performance. Another thing is that Bitcoin does not pay dividends to their investors.
What if the stock goes to 0?
Individual stocks may go to Zero but diversified indices (e.g., SP500) don't.
If they do, it is the end of the world as we know it! For example, SP500 = 0 means all the largest American companies in all sectors have collapsed.
Don’t buy a stock without a track record haha
then it's a penny stock. then OTC
If the company goes bankrupt you lost it all of course. If the company is still somehow in business with a stock at $0 then it’s still not a loss unless it’s locked in.
It'll come back up😂🤣yeah right...
One should have an entry and exit strategy
The market trend can turn around very quickly. In fact, the indexes often switch from a bear market to a bull market when the news is at its worst and the mood of investors is at its lowest point. I read an article of people that grossed profits up to $150k during this crash, what are the best stocks to buy now or put on a watchlist?
This is still a window-shopping market. But there are a lot of intriguing stocks to watch from a variety of sectors. You don’t have to act on every forecast, hence i will suggest you get yourself a financial-advisor that can provide you with entry and exit points on the shares/ETF you focus on.
I agree, having a brokerage advisor for investing is genius! Amidst the financial crisis in 2008, I was really having investing nightmare prior touching base with a advisor. In a nutshell, i've accrued over $2m with the help of my advisor from an initial $350k investment.
@@lilyhershey1 Kudos on the effective execution of innovative ideas and tactics that lead to significant advancement. As I seek guidance from a trustworthy advisor, would you be willing to share details about the individual assisting you?
Wright promptly do a web check where you can connect with her Gertrude Margaret Quinto and do your research with her full names mentioned..
My needs are kind of unique and complex. I'll contact her nonetheless, and I hope I'm able to make something out of it.
Concluding 2024 with a 20% decline in the S&P 500, long-term investors find a promising entry into 2024. Noteworthy ETFs include: $VOO for S&P 500, $VTI for total US market, $QQQ for tech growth, and $SCHD for growth with dividends. Calculating my annual dividends, I'm thankful for $167k-attributing it to discipline and focus.
In the past month, my "unexciting" index funds provided me with over $6,000 in dividends, giving me the option to spend without selling shares. Currently, I've opted to reinvest the dividends to acquire additional index funds for future growth.
Seeking advice on dependable monthly investment options. My goal is to eventually enhance my work income with consistent monthly returns from investments, alongside my long-term investment strategy, for a supplementary monthly income.
@@maryHenokNft Kudos on the effective execution of innovative ideas and tactics that lead to significant advancement. As I seek guidance from a trustworthy advisor, would you be willing to share details about the individual assisting you?
The decision on when to pick an Adviser is a very personal one. I take guidance from *Gertrude Margaret Quinto* to meet my growth goals and avoid mistakes, she's well-qualified and her page can be easily found on the net.
I copied her whole name and pasted it into my browser; her website appeared immediately, and her qualifications are excellent; thank you for sharing.
I like thinking about buying stocks in the same way private equity buys companies.
Exactly! I might say it's up or down, but never I made it or lost it until I sell it and seal the gain or loss...
It's hard for some people to understand. It's hard to watch it go down and not sell, because you are afraid of it losing even more value.
The erosion of my financial reserves due to inflation adds to my concerns. At this point, I'm still at a crossroad regarding whether or not to liquidate my $138k stock portfolio. What’s the best way to take advantage of this current market?
Find quality stocks that have long term potential, and ride with those stocks. I have found it takes someone who is very familiar with the market to make such good picks.
@@MatthiasBauernfiend Please, could you recommend the FA you work with? I could really use some help right now.
Tell that to Japan who's stock market peaked in the 1980s. Any Japanese person wishes they would have sold near the peak. Unless your stocks goto zero they can go to zero.
Yep .. don't think it can never happen the USA..
It can and probably will,
Just hopefully not in my or your lifetime.... 😂
Very useful thank you
This is the most basic concept of the stock market and investing in general. It’s mind blowing that people don’t understand this.
Well said
100% Truth... I can't agree on all things out of this guy, but he is hitting the nail on the head putting this info out there
Well said!
🎉 That’s a great idea! Betting is always more fun with friends around, and those bonuses for referring them seem pretty generous.
I love Dave's financial teaching. 🥰
Thank you.
same with your home, value will go up and down but eventually you live there long enough, you gain.
Like when people talk about "cash flow" from a rental property they have a mortgage on
More like a cash trickle...
This type of thinking turns the average retail investor into a bag holder. Stop losses at key levels are non-negotiable when you have a small account
Good to hear this good advice again.
Good point
ABSOLUTELY 💯 AGREE!!! IT'S ONLY ON PAPER!!! 10 MILLION DOLLARS 💸 IS LIKE 10 CENTS TO BUFFET!!!
This is exactly how I feel about people when they talk about their houses and one that just sold down the street
The most amazing investing quote i ever heard!
Yes, best advice in today's generation
He probably has ten million dollar swings each day. It was probably billion in that story
This is correct mentality. I get so many people who tell me to sell stocks because they're going down in value, because they think I've lost money. Everything has an opportunity to go back up, and may take a while, but there's always a chance. That's the gamble you take when playing the stock market. But as long as you don't sell, you haven't lost anything yet.
Famously said! ... It's basic Economics 101
You haven’t lost money until you walk out of the casino
Great philosophy
Yes the stock market is always very volatile.
Okay, so Mr. Buffet hasn't declared bankruptcy until he can't buy any food, clothing, and shelter
Great, you just explained "Paper Wealth"
A friend said'' I saved $1000 dollars on this watch.''
I said ''No, you spent $5000 dollars on that watch.''
He didn't get it!
Mr. Buffett was once asked "Mr. Buffett, how do I become a millionaire?"
To which he replied, "Be a billionaire then invest in an airline" 😂
Interesting way to look at it
Golden message here guys
Not enough people understand this . If anything, but more when everyone is freaking out.
Love it!
Right, so you can't sell when you need it.
EXACTLY. I can't reiterate enough: People start freaking out when the market dips and their 401k drops. ITS NOT A LOSS UNTIL YOU PULL OUT IN A LOSS POSITION. Let the damn thing sit and wait it out as best as you can.
Very true
So true 👍
Eh, there are ways around this “sell in order for it to count” concept. You can get loans and lines of credit off portfolio value without selling.
A more everyday example is home values. You can definitely capitalize off home value increases/equity in the form of home equity loans or HELOCs. That’s a big reason why we got into the 2007/8 housing crisis.
I get Warren’s sentiment with his perspective, and in general it’s true, but there are definitely ways around the sell-point being the finish line.
Do you still have worldcom stock?
Always a good reminder. Long term long term long term . How many stocks go up300% drop 400% then go to 200% … stocks are not for the impatient investor
Yes and the problem right now is the tax treatment of paper losses on reported financial statements which deceives investors even more