RE:RE:I am dreading the day we get a buyout offer Till death do us part? No, that is not my relationship with Karora.
We’ve all heard the investment advice “cut your losses and let your profits run” - but in practice this may be one of the more difficult admonitions to follow.
Look at how long people are willing to hold onto a stock that is going nowhere in price - and yet once it starts to make its move they can’t wait to get out of it. It’s as if all that long-suffering patience has bred a degree of desperation. I would daresay more money is lost in the stock market due to premature selling than maybe anything else.
Selling my stock today at somewhere around $12 would not be a bad move at all - as I see Karora as closer to a $2 billion company at this time than a $1 billion dollar company.
But to hold onto a stock for months if not years and then be so anxious to get out of it once it starts moving does not make a whole lot of investment sense. I would say THAT would be allowing your emotions to affect your investment decisions.
After all your hard work in supporting a stock while it languishes in the doldrums, the last thing you want to do later is to leave the greater portion of your profits on the table - in fear that your good fortune may prove to be short-lived or elusive.
If one is going to operate out of fear, it would be more appropriate to exercise that fear when initially choosing your investments.
We don’t want to be accepting of failure and fearful of success. If we are confident of our investment choices we can afford to allow ourselves to be duly rewarded when the time comes.
Cut your losses and let your profits run.