Q: Hi Peter,
I have to admit this fact first. What's making 5i research more popular is this QA session which covers your brief opinion on a wide array of companies compared to the actual company analysis. So hats off to that and the amount of knowledge and insight offered by these comments would definitely be helping a lot of people invest in good companies and avoid bad ones.
My question for today is about timing. Generally perceived notion is to stay invested for the long run for many years. But in today's market it might end you up where you started or much lower. Let's take an example. I invested in MMT at $1 at $1.40 and $1.66. If I exit now I would be making a good return after inclusion of dividends. On the other hand I invested in TOL at $3.75 and then at $2.19 and it went down to $1.40 and I am still holding on to my shares where I am now thinking of selling the latter position even though it might go much higher or go back to $1.40. How should one behave in these two different circumstances and when should one draw a line for profits or losses if the future direction is not very clear and the opportunity cost of investing elsewhere or staying invested might be huge. ( Another good example could be AVR which at one point was $2.50 and now languishing at $0.67)
Thanks
I have to admit this fact first. What's making 5i research more popular is this QA session which covers your brief opinion on a wide array of companies compared to the actual company analysis. So hats off to that and the amount of knowledge and insight offered by these comments would definitely be helping a lot of people invest in good companies and avoid bad ones.
My question for today is about timing. Generally perceived notion is to stay invested for the long run for many years. But in today's market it might end you up where you started or much lower. Let's take an example. I invested in MMT at $1 at $1.40 and $1.66. If I exit now I would be making a good return after inclusion of dividends. On the other hand I invested in TOL at $3.75 and then at $2.19 and it went down to $1.40 and I am still holding on to my shares where I am now thinking of selling the latter position even though it might go much higher or go back to $1.40. How should one behave in these two different circumstances and when should one draw a line for profits or losses if the future direction is not very clear and the opportunity cost of investing elsewhere or staying invested might be huge. ( Another good example could be AVR which at one point was $2.50 and now languishing at $0.67)
Thanks
