When are opportunity costs, opportunity costs?
$NOVO B (-2,54%) -10% in the securities account 🥹
$ASML (+3,19%) -11%
$MDLZ (+0,96%) -2,4%
$COKE (+0,85%) -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 (-0,18%) 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.
