That's what Warren Buffet says also something like "Never take a loss"
Do you know what an INVESTISSOR FRAMEWORK IS ? In an investissor framework they just accept to lose 100% on a position so they don't do any leverage and don't put their capital on one egg. It is not a SPECULATOR FRAMEWORK you would sure be killed by doing the same thing ! The fundation of an investissor framework is based on minimal value that is to say they are sure that the price of the stock is at least worth the real value of the firm. So in their mind they are sure that at long term the price will never stay under their buying price. Of course they can wait very long that's why they are investissors
. They also can make a judgement error but if they take precautions it is rarely the case, and if it is the case as I said they expect to lose 100% on the stock. Whereas in a speculator framework you don't bother with value and don't want to support staying a long time with the same stock.
Do you know what an INVESTISSOR FRAMEWORK IS ? In an investissor framework they just accept to lose 100% on a position so they don't do any leverage and don't put their capital on one egg. It is not a SPECULATOR FRAMEWORK you would sure be killed by doing the same thing ! The fundation of an investissor framework is based on minimal value that is to say they are sure that the price of the stock is at least worth the real value of the firm. So in their mind they are sure that at long term the price will never stay under their buying price. Of course they can wait very long that's why they are investissors
. They also can make a judgement error but if they take precautions it is rarely the case, and if it is the case as I said they expect to lose 100% on the stock. Whereas in a speculator framework you don't bother with value and don't want to support staying a long time with the same stock.Quote from okwon:
The site says it is very important that you never take a loss. Is this guy saying to just hold your losers until (if?) they become profitable? I think this strategy might be just a little flawed.![]()