Hey @Guillaume_GVA, so, I really have to thank you for asking that question about why I keep holding positions with >50% loss after 2-4 years.
At the time I rationalized why I was still holding on … and it even rang true at the time and for some positions still rings true … but your question has really been slowly braising on my mental stove and like most … ahem … tough meaty pieces they have tendered over the past couple of weeks and I’ve realized that the actual answer is as simple as it is obvious:
Loss Aversion.
Tough meat and braising it is probably my favorite kind of meat and it seems this method is also suitable for bad investment decisions of mine. Have someone question it, let it simmer on my mind for days and weeks, and come to the unavoidable conclusion that this company was the wrong one to invest in.
I shed off most of the companies I previously justified continuing to hold (on green days – can’t quite quit the market timing) plus a few more.
Still sitting on a few turds where it’s a little harder to sell as their remaining (dividend) yield is still way above what I currently feel comfortable buying into other companies on my watchlist – I should mention that when I sell I prefer replacing the “lost” dividend amount with a similar (ideally higher) “new” dividend amount.
Anyway, it’s a process, I guess.
Thanks again.