Forum Archive Index - September 2000

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

> 
>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. 
>
>
Yes, but if you continue to hold the share, the loss is *also* real.
>
>
>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.  
>
>
Of course.  Just because you think a share price is going to be 
higher in 2-5 years doesn't mean the price will go relentlessly 
higher in between now and that time.   This is called volatility.
If you can't cope with it, you shouldn't be directly invested in 
the sharemarket at all.
>
>
>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.
>
>
Not the only way at all!  You can ride the volatility wave, and wait 
for the share you are already invested in to go up in price again.   
If you are a long term investor and did your homework properly in the 
first place you will indeed do just this.   You might even buy more 
in any short term periods of weakness.
>
> 
>I will take the short term pain on RMG  ( which is not a
>real loss ). 
>
>
It *is* a real loss.  Repeating this inaccuracy doesn't change it.
Brian you wrote the following sentence in your last posting.   Could 
I suggest you follow your own advice?
>
> 
>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.
>
>
SNOOPY



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