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I saw the headline and my mind went to HODL as well, but the article itself is definitely about modest, safe investments, not "diamond hands" and moon-shots.
by SamBam 4y ago
I saw the headline and my mind went to HODL as well, but the article itself is definitely about modest, safe investments, not "diamond hands" and moon-shots.
- dragontamer 4y agoI agree. Its a good article in isolation. My main problem is that HODL is a pretty common mindset, based on random discussions I have on the street / with people in general. You know, the types who lose 60% on ARKK but they're sure that they're going to "make it back" over the next few years? Or the people who think that losing 60% on ARKK is similar to losing 15% in VTI / SPY? (For those who don't realize, starting with $100k, you end with ~$40k if you had ARKK, but $85k if you held onto VTI/SPY. Aka, those who held VTI/SPY have twice your money now relatively speaking). Unrealized losses _are_ losses. People must recognize this. People are corrupting the buy-and-hold advice to mean "ignore the unrealized losses" or "if you don't sell its not a loss", which is bullshit.
- jxramos 4y agoI realized in the recent past that another part of the picture that may be missing for the HOLDers is that the losses can be initiated by other parties. That is to say if someone liquidates a company and it gets bought for $X which is some fraction of the share price the HOLDeler paid, then they will be forced into taking loses. That third party factor adds a whole other dimension to the risk of holding indefinitely, because there is no such thing as an indefinite runway in the market, someone can put an end to a company at any point in time just like we saw with TWTR recently.