[Matt]

Need some thoughts, or maybe just a push
I am considering selling my Covid losers (PayPal, Roku, Fiverr, Docusign, Twilio).

Not that I necessarily no longer believe in all of the companies, but I am going to be waiting a long long time for these share prices to get back to my buy in price, if they do at all.

I celebrated some big time Covid era winners, but these are just completely stagnant now.

I can tax loss harvest some of these losers, then put the cash into other stocks that I believe in and make it a much better chance of recovery and even gain, yeah?

Thank you.

[Amy]

Instead of swapping those individual stocks for other individual stocks, you may want to consider swapping your strategy instead.

You have a greater chance of growing your wealth if you invest more broadly by buying index funds and holding for many years.

Right now you’re speculating rather than investing.

[Scott]

Would you buy them today, at today’s prices? Because that in effect is what you are doing at 3:59pm every day you don’t sell.

Obviously you should factor tax considerations to optimize the losses.

[Matt]

You’re attempting to both pick stocks and time the market, each losing strategies.

Just do low-cost, broadbased index funds (like VTI or VOO), held for the long term, for the far more reliable win.

[Oz]

Edited – I was using voice text Would the amount raised from sales of the stocks make a material difference to your life?

for example, could it fund your next vacation?

might be worth considering if get out of stocks you don’t care about, and convert it into experiences that you would care about

[Jason]

‘forget the cheese, let me out of the trap’. My advice.. dump them, tax loss harvest. Switch to indexes.

Don’t try to pick winners…

just play the whole market.

[Su]

Waiting for the price to go back to what you bought them for is not a smart strategy and is one of the biggest cognitive dissonances in investing.

Look at the value of the companies based on the valuations of other experts, what is the moat and the general sense of growth, based your decision solely on that.

[Carly]

I read one up on Wall Street by Peter Lynch and I really enjoyed it. If you believe in the long term profitability of the companies, you could stay invested.

If you wouldn’t buy them now, maybe it’s time to cut your losses and reinvest somewhere where you feel there’s more potential.

[Author]

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