Sandstorm Metals & Energy Ltd STTYF

RE:RE:RE:RE:RE:RE:RE:RE:Colossus stream probably died today

[aagold]

Jeremy,

I'm not going to weigh in on whether SND is a good investment at this price or not, but there's one thing I do know for sure: the decision you make regarding selling it now or holding on for a rebound should be *independent of your purchase price*.

I find this to be the most common mistake investors make.  When making decisions like this, I find that of all things people consider when making the buy-more / hold / sell decision, nothing counts as much as their current profit/loss on the investment. 

The problem is, the current profit/loss you have on an investment is absolutely meaningless as a predictor of *future* investment returns.  The only logical way to estimate *future* investment returns is to compare the current market price of the stock to an intelligent estimate of its "intrinsic value", which is all future cash that can be extracted out of the business, discounted to present value at an appropriate discount rate.

Ok, I'll get off my soapbox now!  :-)

- aagold