2Settimana·

When are opportunity costs, opportunity costs?

$NOVO B (-2,39%) -10% in the securities account 🥹

$ASML (+0,06%) -11%

$MDLZ (+0,98%) -2,4%

$COKE (+1,75%) -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 (-0,74%) 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


-
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.

4
7 Commenti

immagine del profilo
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 😉
19
Visualizza tutti 2 ulteriori risposte
immagine del profilo
2Settimana
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?
2
immagine del profilo
I failed with this post. The comments show me that I communicated something different to the outside world than I had in mind :(
2
immagine del profilo
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. 😃
1
immagine del profilo
2Settimana
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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