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Considering the expected value of your publicly traded stocks at 0 is not good advice. If you actually believe that, then it would make sense to trade all of yo
by travisjungroth 7y ago
Considering the expected value of your publicly traded stocks at 0 is not good advice. If you actually believe that, then it would make sense to trade all of your holdings for a dollar.
- giantg2 7y agoI think you ignored the last sentence of my previous comment :)
- travisjungroth 7y agoI didn’t ignore it. It’s just in conflict with your first sentence. I’m not sure if you’re talking about EV in technical terms, or a more lose “count on it way”, but neither makes sense to discount to 0. Like if you’re 50 and have a million dollars in stocks for retirement, you should put an expected value of 0 on that? Seems silly to me.
- giantg2 7y agoFair point. My unstated perspective was from investing in a single stock without stop-loss orders using an informal 'don't count on it' definition. Yes, depending on the stock and many other factors - it probably shouldn't be zero. Same should be said of the equity package in the parent comment depending upon the circumstances and terms.