Hold: if you got it right, sit tight
Even winners fall hard on the way up. Tesla dropped 68% in 2022, then made new highs
−68%Tesla, Nov 2021 to Dec 2022
- $382, Nov 2021
- $123, Dec 2022
- New high, Dec 2024
Month-end share prices. Source: Nasdaq
How we hold
- No stop-loss orders
- No judging a year or two against the S&P 500
- Every quarter, check the business against the note you wrote when you bought
Why it matters
A stop-loss sells on the price, not the business, and in a crash it fills at the worst price. And a 10x goal takes ten years: trailing the market for a few of them is normal.
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