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kgromax

09/25/21 4:53 PM

#186071 RE: Chuckles759 #186053

In mark to market accounting, a loss is a loss, whether realized or unrealized yet.

Investors speculating that maybe they could transform their loss into an escape (or worse, a win) are only in for a wider loss. It’s a very well known psychological bias.

This is not a value investing stock (the only type of investing where mark to market is not relevant).

A good example is a stock undergoing formal bankruptcy: it falls from $2 to $0.2. And then, in the common case, the stock is cancelled. Until the stock is officially cancelled, that’s still an unrealized loss. The stock is still there in the portfolio, only with a price in the pennies. By your logic, it doesn’t count. I posit that it does.

All my short predictions since I came in (July 2020) where correct. All of them. I wish long investors over the last 12 months had a similar track record. They din’t. They lost ALL their “sure bets”. Funny score.