Coping With Losses

May 2020

Other things equal, selling investments that have declined 30% in order to buy those that have only declined 10% simply reduces the recovery potential of one’s portfolio. Again, we’ll sell any company when a reasoned assessment of the outlook has changed suffi­ciently for the worse. However, history tells us that apart from changed operational outlooks, those stocks that have declined the most will likely rebound the most.