RE:Time and Money.. SITTING.. AC and othersFaith is not a strategy
Darren Coleman, The Globe and mail today.
I just red a article about a guy who have a 1,8 M$ TFSA and 6 M$ in his RRSP with 90% of his investment in only one stock. The investmnt expert called to analyse his strategy give the answer written above.
I don't know if you realize how simplistic you describe the investment world; Traders and sitting longs. Maybe you didn't want to write a too long post and choose to describe only these two opposite strategies.
I surely not agree with your sitting long strategy which give nothing as return with AC for the last 4 years. Zero. That's the reason I wrote ''Faith is not a strategy''. AC have given faboulous returns between 2012 and 2019 but the situation that bring this success simply dissappear in 2020.
Being long doesn't means that you sit on a stock. you have to follow it, analysing any events, change in its environment and at the end ask the question : do I keep it?
I agree that for the 2012-2019 period, the environement was very positive for AC but after the grounding of jets in 2020, there are many situation to exit. What was your rationale to stay while the SP was at 23$ in july 2020 and 29$ in march 2021? Did you expect a 35$ or 40$ with all the debt they get and the stock dilution? Not to mention the (only) gradual return to normal (employees, airports, clientele etc)?
This money was dead for 4 years.
Link to my august 24, 2023 post on AC:
https://stockhouse.com/companies/bullboard?symbol=t.ac&postid=35603549
Buying or keeping a stock are the easy part of the job. Selling is the most difficult part of investment. The idea is not to trade ( I make less than 100 transaction per year) but to exit when the potential gains are consumed.
That being said, at 17$ today, it is a bargain; don't miss it.