You really ought to read Buffett 101, or any basics on value investing! 
Why This Computer Scientist Says All Cryptocurrency Should “Die in a Fire”
- Thread starter Frederick Foresight
- Start date
I have and don't agree with them. I'm more in the camp of O'Niel, Darvas and Minervini.You really ought to read Buffett 101, or any basics on value investing!
I out perform BRK.
It was only an example to make a point. Nothing more.It happens all the time with stocks and bonds. I happened to me once and I didn't like it so I changed my ways.
I only buy stuff, including crpyto that is increasing in value. I never hold assets that are trending downward. I've opened small positions in crypto(BTC) twice this year and taken a small loss both times. I would never let an asset that had gone up 10 times return to breakeven.
But now you are deflecting. Who cares if stock and bonds do the same thing. To have something increase in value 10 times and then let it go back to breakeven seems like a waste of time and money. You at one time had $100 and now you have 10 and your OK with that because other people do it?
And the point is?
He may not have sold at a loss, but he is sitting on a loss at this moment in time. How else would you describe a decline in the value of holdings, irrespective of what the intention may be?
A trade or investment. No profit or loss till trade is closed.
Same when in a paper profit. Don't count your chickens till they hatch.
Why is the concept hard to understand?
So then you would regard an investment that went down 90% in value as roughly the same as one that went up 10-fold simply because neither one was closed out?
See post# 103. GN
It is hard to understand when you step from the individual trade. Your brokerage sends you a statement at the end of each month. The value of your investments change. Your liquid networth is calculated based on the current price of your assets.
It would be hard to put up a security as collateral for a loan based on the price you paid for it,especially if the value has dropped.
The only ones who care what you paid for an asset is you and the taxman. If your liquid net worth is dropping each month then you are losing money. Trying to convince yourself otherwise is only fooling youself. Nobody lies to themselves worse than a trader who is underwater.
Hope you wrote that tongue-in-cheek because that line of thinking is only used by losers and scammers.
If you have an asset that is 90% down, try to go to a bank and use it as a collateral valued at the purchase price, tell me if they smirk, laugh or ridicule you.
Everything is mark-to-market.