Quote (ofthevoid @ Jul 30 2024 02:35pm)
One of the biggest mistakes people make with individual holdings/active managed is they sell too soon. It's instinctive, stock goes up a lot, we want to cash in and pocket the chips. But a lot of the times those end up being some of the biggest winners. I had Nvidia before split in the 300s and sold for like 30% gains, only for it to 4x and basically be worth >$1000.
I think the longer someone has been investing, there's wisdom that comes from just holding and not being in and out all the time. Now rather go buy a semiconductor etf because long term i think it's a good investment and not worry about the 10-20% drawdowns here and there, because my time horizon is decades not months.
Yea, I think most people have those stories. Sony was one of the first stocks I bought starting out, and I felt great taking profit at $29 for something I bought in the $16-17 range. Now it's trading at ~$100 a share. Meanwhile that money sat in cash for way too long waiting for busts that never came.
A second big mistake is that very few are willing to put any effort into understanding a company's financials, which makes it impossible for them to have any sort of consistent process for evaluating price.
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