This question is for Travis, if you could/would answer.
by tracyb | March 9, 2021 10:30 am
Hello, I am a new investor, since March 2020, have had some great rides and watching my portfolio sell of but still way ahead.
I listen to Fool Live, and read Stock Gumshoe regularly. The Fool are are buy and hold long term philosophy and they have stated that if Dave/Tom had not ever sold any stocks that they purchased that they would be richer today.
In this newsletter you seem to TRADE stocks but still have a long term philosophy.
My question is simple in theory, execution may be a bit harder.
Would you have more money today if you had never sold any of the stocks that you have purchased, no stop losses, no TRADING, just buy and hold?
Not sure how you would deduce that, maybe just go back to the first time ever buying a new stock and from that day see where it is and overall total of the amount had you never sold compared to where you are today trading the way you have?
Please forgive me, if this is a stupid question but with what I am seeing with this sell off and possibly knowing that there is no need to worry because if you just hold on, you will always be better off.
Source URL: https://www.stockgumshoe.com/2021/03/microblog-this-question-is-for-travis-if-you-could-would-answer/
I’m not Travis but statements like that don’t take the reality of most investors financial world into account. I sold shares of P&G that have done well since I did so and on the surface it would seem like that statement would be true for me. Missed out on both the growth of those shares and dividends since July of 2012. All that would be in support of holding forever. That is until you see that I used that money to buy NFLX at a split adjusted $8.50 a share. That seemed like a poor choice for the next year or so but I am sure was the right one since then. I haven’t gone back and checked but with the pull back I am at around a 6,000% gain. No way P&G does that for me. If you only have a steady flow new money coming in and never have to sell something to buy something else their statement may make sense. However, I don’t think that reflects the average investor. I sold some F the other day and at the same time bought more TTD @$585. I had cash so I didn’t sell F to buy TTD but I keep a certain cash position and as I start to drop below that I liquidate positions that I feel like my original thesis for buying has expired. This gives me cash to make purchases like TTD (at $725 as I write this 4 days later) during crazy times. It would be impossible for me to do this calculation because of how I invest.