LibraryScenariosWhy holding onto losing investments guarantees more losses
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Why holding onto losing investments guarantees more losses

I cannot sell my losing stocks because that would make the losses real, so my portfolio is full of companies I no longer believe in.

Zera
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More people experience this than they realize.

What we've seen

The pain of realizing losses creates attachment to failing investments that prevents rational portfolio management and capital reallocation.

Ideas that help explain it
Worth thinking about

“Where Are You with Behavioral economics — biases in financial decisions?”

If this sounds familiar, the Library can help you find the bigger picture.