18H·

Oil and gas stocks, take profits vs. hold

Hey everyone,

I've just caught myself changing my own plans and views as soon as the market environment changes.

BP has been bobbing around in the red in my portfolio for months and not so long ago I said to myself: as soon as it's up, I'll dump it... It will happen at some point. Now the time has come. And I'm not so sure anymore :-) Now I think: I'm taking a long-term view. They pay dividends regularly. And without withholding tax. And especially if such a situation arises again at some point, it doesn't hurt to have a share that stabilizes the portfolio.

What are you doing at the moment? Hold or sell? $SHEL (+0,27 %) $BP $VAR

4 Comentarios

DividendenAlpaka@DividendenAlpaka

18H

My $SHEL & $PETR3 are classic dividend stocks, buy & hold and buy more if they are down. However, if you have wanted to get rid of them for a while, now might be a good time to do so.

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Julian@MoneyISnotREAL

17H

Regardless of the value: research the "sunk cost fallacy" and oppertunity costs😉

Your thought "I'll hold them until they turn positive again" & "...I'm not so sure anymore" is not a rational action step, but based on emotions. You have clearly set yourself the rule - when they turn positive, you sell. Now you're throwing your decision overboard because things are going well. What do you do if they slip back into negative territory? Wait x years again?

Only you will know the answer to your question, because it has nothing to do with the financial situation (yield, drawdowns, div yield), but is a purely emotional decision.

From a rational point of view: You should probably have realized losses back then, as the investment case was probably no longer there for you > reallocate. You set yourself the rule to sell when green > so implement it.

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stocker_1862@stocker_1862

I once read somewhere in a post here.
"Let profits run and build on them. Don't buy the dip if you lose." I had that tattooed on the inside of my eyelid ;) Now I'm trying to stick to it. Not that easy.
In your case it would mean: let it run, hedge with a stop, drink tea and be happy.

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Clown I.@alex1973

I always use oil companies that pay regular dividends for cash flow, as a supplement and as stabilization for times like now. I'm letting them run now and if they fall again, I'll buy in moderation.

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