When you admire the results of major investors and decide to adopt their long-term investment approach, it’s important to understand one critical detail: these successful financiers had the privilege of constantly attracting new capital. This additional influx of funds allowed them to offset unsuccessful investments that remained in their portfolios with negative results.
Essentially, they had the luxury not only to increase their positions in winning assets but also to accumulate losses without exiting their positions. For them, realizing losses online is not a catastrophe but part of their strategy.
Here’s an honest question to ask yourself: do you have the same opportunity? Do you have a constant source of capital to compensate for losing investments? If the answer is no, you need a different risk management strategy than these investment giants.
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Buy and Hold Strategy: Why Professionals Are Not Afraid to Take Losses Online
When you admire the results of major investors and decide to adopt their long-term investment approach, it’s important to understand one critical detail: these successful financiers had the privilege of constantly attracting new capital. This additional influx of funds allowed them to offset unsuccessful investments that remained in their portfolios with negative results.
Essentially, they had the luxury not only to increase their positions in winning assets but also to accumulate losses without exiting their positions. For them, realizing losses online is not a catastrophe but part of their strategy.
Here’s an honest question to ask yourself: do you have the same opportunity? Do you have a constant source of capital to compensate for losing investments? If the answer is no, you need a different risk management strategy than these investment giants.