Kate (@Iwanowitsch) on getquin

When are opportunity costs, opportunity costs?

$NOVO B (-1.3%) -10% in the securities account 🥹

$ASML (-0.05%) -11%

$MDLZ (+0.11%) -2,4%

$COKE (+0%) -5%

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I've been asking myself for a few hours now.

When are opportunity costs, opportunity costs? When does it make sense to hold a loser in the portfolio?

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The second question is "easier" to answer than the first (especially with hindsight 😜)

If, for example, a good company like $MCD (-0.01%) is punished by the stock market due to bad bacteria in the dip (panic selling), in my opinion it is worth holding and possibly buying the dip.

If a solid company has short-term problems but nothing has deteriorated fundamentally or in terms of future prospects, it is worthwhile in my opinion.

In other words, it might be worth holding a share despite falling prices if it:

-has strong fundamentals solid financial ratios, low debt and sales growth.

-Positive long-term prospectspositive long-term prospects, for example companies with a clear competitive advantage, a moat, profiteers from trends, a well-filled order book

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temporary market or sector problemstemporary market or sector problems, for example, when share price losses are caused more by external factors or sector-specific problems that affect the company itself less. Such factors often lead to overreactions.

- Confidence in the management/strategy, "Good morning Elon 🚀" Joking aside, good management with a good strategy can also overcome major crises.

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Do one or more of the above points apply to my positions in the minus?

Yes. Will they therefore all recover and provide high returns? Maybe, but probably not. Fifty Fifty.

Nico Uhlig@RealMichaelScott

3Wk

Just because a share is down for 3-6 months does not automatically mean that it was a bad buy.
It is only a bad buy if you misjudged the company/management in your analysis or if the future business development has changed dramatically since then. If neither is the case, patience can sometimes help 😉

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View all 2 further answers

wasi@wasi

I would keep them all, think long-term. The only thing I wouldn't be sure about is $COKE. Why did you buy that and not $KO?

Kate@Iwanowitsch

I failed with this post. The comments show me that I communicated something different to the outside world than I had in mind :(

Björn@Kapital_Koala

I always find it amazing how quickly investments are called into question because they are suddenly down a few percent. 🤡

You bought the share at a pretty high level, after such a rally you have to expect a healthy correction, don't you? Are you no longer convinced by their pipeline because of the correction? Or did you expect the share price to double again in a hurry?

I am not invested, but I assume that $NOVO B will continue to be an interesting investment and that we will continue to make use of their drugs in the future. I would therefore hold and, depending on how large the position is, buy more if there are setbacks. 😃

K@TechNav

If you're not prepared to hold a stock for several years, you shouldn't own it for a minute. If you buy a stock at a price you think is fair and then the price falls, you should see it as an opportunity, possibly even a bargain - even if the value falls by 30%. However, if you buy with the intention of selling at a profit in a few days or weeks, you are speculating rather than investing. That is gambling.

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