sulldt
31 posts
msg #161373
- Ignore sulldt |
9/22/2024 1:15:36 PM
If you invested 50,000 each in 5 stocks, 250,000 total, and a year latter 3 were up 20% and 1 was flat and 1 was down 20%, which would you be better off selling if you needed 20,000?
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jimvin
173 posts
msg #161374
- Ignore jimvin |
9/22/2024 8:40:52 PM
If I read the scenario correctly, and since my analysis and opinion is without any worth...
Using a crude version of set theory:
Set A (3 stocks are each up 20%) offers a net value (increase) of ($10,000) per-set member for a total of $80,000
Set B offers a net value (stall) of $50,000
Set C offers net value (devalue) of $10,000 for a total of $40,000
I foolishly believe that much would depend on any number of factors: one's approach to investing, whether the stocks are held in a retirement or non-retirement brokerage account (which would influence taxes to be paid or avoided), one's current income (high income earners possibly subject to an additional 3.8% net investment income tax on both short-and-long term capital gains), the current market, one's feeling about the future of the market, the sectors of each of the stocks and one's feeling about the future trajectory of those sectors and other to-be-defined factors a person might take into consideration.
With regard to taxes, for example, if the securities are held in a non-retirement brokerage account, the investor could use "tax-loss harvesting" - using capital losses to offset realized capital gains or a small portion of ordinary income.
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snappyfrog
721 posts
msg #161375
- Ignore snappyfrog
modified |
9/22/2024 9:39:30 PM
Since I am a swing trader and not an investor, there probably is little value in my answer.
However; I would hold my winners and flat stocks and sell my losers.
But, with so little information about each individual stock, it is really hard to say.
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sr7
143 posts
msg #161377
- Ignore sr7 |
9/26/2024 12:03:52 AM
Well, here's my opinion :D
If you're going to sell, it's usually smartest to sell part of one of the stocks that's up 20%. That way, you're cashing in on only the gains (well mostly) without losing money on the others. Plus, you still get to keep most of your initial investment for future growth. Unless there’s some specific reason you need to take a loss (like for taxes), this lets you sell when the stock's doing well and only take profits on a part of what you originally put in.
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snappyfrog
721 posts
msg #161382
- Ignore snappyfrog |
9/26/2024 2:43:23 PM
I use stop losses, so I would never have been down 20%.
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