Forum Archive Index - September 2000

[Brian Gale <brigale@i4free.co.nz>]

That's a classic case in point Warner.  RMG - down again today. We
are both showing paper losses. So do we bite the bullet and sell
?  If so the loss is real and we will presumably hope to make
it up on something else. But we both believe RMG will prove to be
successful in the longer term. The problem is we watch the market day by
day and tend to forget that this could never be anything else but a long
term investment and now we are looking at it short term and disappointed
with the current price. That is what I was trying to say before, we
should ignore the current price fluctuations if we bought in the belief
of long term gain. Once the loss is real it can only be recovered by
finding some other stock with the potential to at least recover the loss
and this might be easier said than done. In any case wouldn't we be
looking for a short term gain to recover our loss ? There is a danger
that the broker is the only one to make a profit.

I think the over-riding problem is that we may say that we are ' long
term '  on a particular stock but in reality we are either too
impatient or lack the courage to stay with our original conviction. ( I
include myself in this as it is so easy to become side-tracked ) 
Maybe the solution would be to completely ignore those stocks which we
had classified as long term 'i.e. ' bottom drawer' them and look again in
6-12 mths.

Like you I will take the short term pain on RMG  ( which is not a
real loss ) and look to the future.
Regards
Brian

At 12:58 04-09-00 +1200, you wrote:


> My eg. and the only red ink on the screen for
> me is RMG, RMGOA. -10%
> now $1500 red.
>
> My original belief is strong, and have rechecked my reasons for buying
> and
> this definately comes into my two year horizon, and short term I
> have
> decided to take the pain.
>
>
>
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