3 ms·
>This looks bad, but I assume that with time the price will recover. This is a fallacy that leads to holding poor investments. There's an opportunity cost to
by itsoktocry 4y ago
>This looks bad, but I assume that with time the price will recover.
This is a fallacy that leads to holding poor investments. There's an opportunity cost to every dollar invested beyond the drop in price.
- fosk 4y agoYou are also running with an assumption that whatever investment they may have used the same funds for, would have netted a gain (or a lower loss). The opportunity cost argument is only valid if in the alternative investment you actually end up in a better spot, that's not a given.
- ericd 4y agoYeah, especially given that the risk-free rate is currently pretty strongly negative in real terms.