Rhys Adams
Australia
Hello Ladies and Gentlemen, A bit of general investment philosophy for you all. "๐™Ž๐™š๐™ก๐™ก๐™ž๐™ฃ๐™œ ๐™ฎ๐™ค๐™ช ๐™ฌ๐™ž๐™ฃ๐™ฃ๐™š๐™ง๐™จ ๐™–๐™ฃ๐™™ ๐™๐™ค๐™ก๐™™๐™ž๐™ฃ๐™œ ๐™ฎ๐™ค๐™ช ๐™ก๐™ค๐™จ๐™š๐™ง๐™จ ๐™ž๐™จ ๐™ก๐™ž๐™ ๐™š ๐™˜๐™ช๐™ฉ๐™ฉ๐™ž๐™ฃ๐™œ ๐™ฉ๐™๐™š ๐™›๐™ก๐™ค๐™ฌ๐™š๐™ง๐™จ ๐™–๐™ฃ๐™™ ๐™ฌ๐™–๐™ฉ๐™š๐™ง๐™ž๐™ฃ๐™œ ๐™ฉ๐™๐™š ๐™ฌ๐™š๐™š๐™™๐™จ" - ๐™‹๐™š๐™ฉ๐™š๐™ง ๐™‡๐™ฎ๐™ฃ๐™˜๐™. He could not be more right. It took me a while to truly understand this statement. When I first started investing, prior to Etoro, I would often sell stocks once they made me profit, then hold the losers until they would turn green. But this would often result in my portfolio containing many stocks I no longer loved, but I was too stubborn to sell rather than accept a loss. It has taken me a long time to accept a simple fact, I am not always right. Sometimes I will buy a stock, then the company will decline, pulling the share price down with it. If this happens, a re-evaluation is warranted. Now I am not saying to sell a company every time there is a bit of bad news. But re-evaluate. Sell the loosers. Not loosers because their share price has gone down, but companies who are declining fundametally. This is the same for your winners. You do not have to sell just because you have made profit. Because the potential upside is infinite, a great company can keep growing, keep paying dividends, keep re-investing capital. It is important to build a portfolio of great companies, so you benefit from their growth long term, not realise short lived profits. Let me know your thoughts! As always, if you have any questions, ask away! Kind regards Rhys Adams
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