DieEnte7 (@DieEnte7) on getquin

2Mon·

Dealing with events with particular uncertainty

Hello everyone,

I would be interested to hear your opinions on how you deal with your shares when one-off events cause particular uncertainty. Specifically, it's about $TISG (-3.1%)an Italian shipbuilder that specializes in luxury yachts. The shipwreck off the coast of Sicily with several fatalities (RIP), which was reported quite prominently in the media, occurred on a ship from their fleet. I have read up on the subject and there are probably many indications of human error and few indications of design faults on the part of the company - nevertheless, damage to the company's image or, worse still, a court case with media coverage cannot be completely ruled out. The share price has fallen slightly since then, but nothing that indicates increased nervousness on the stock market. However, I am already considering switching to the sidelines for the immediate aftermath of this sad event... in the end, I can always get back in if the previous impression that the company is not to blame is confirmed. Including order fees and taxes on the profit made so far, it will cost me a tidy €35 for an investment volume of €900. Have you ever had similar cases? How do you deal with it or would you deal with it?

I look forward to your suggestions.

Edit: My own tendency is to set a stop loss somewhere around €7.00, limited to 3-4 weeks.

4 Comments

Dirty30@Dirty30

2Mon

The very fact that you are thinking about it in detail and creating a post suggests that you are no longer convinced of the investment 😁 But generally speaking, I have a more rational view. I can theoretically consider the uncertainties with every investment, but in my opinion that doesn't help much. I either see the opportunities in risks or I see the risks in opportunities. However, the latter will always lead to investing with the handbrake on. You are effectively trading returns for more well-being. In the end, it's always the question you ask yourself: Is the opportunity significantly higher than the risk? Depending on what comes out of this, you have to act accordingly.

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Ella Marie Waschbär@DividendenWaschbaer

2Mon

It depends on whether you are convinced by the company. In such cases, damage to the company's image can usually be repaired relatively quickly.
In other words, people will continue to buy Ferrari even if an engine goes up in flames.

So if you are convinced of the company, then simply hold the shares. If the price goes down, that's great, because you can buy more at a lower price.
But if you sell now and the share price rises and this accident doesn't bother it, then you'll only get back in further up, if at all.

So it depends on whether you are convinced of the company or not. This accident only plays a subordinate role.

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