Key insights
- A retail investor shares their experience of selling a losing position in MSFT and reallocating capital to DRAM and SMH (semiconductors). The investor highlights the opportunity cost of holding onto underperforming assets and suggests that realizing losses can free up capital for more promising investments. This reflects a short-term, tactical shift in portfolio allocation.
I know that's obvious and simple advice but I saw it in a comment this morning somewhere and it really jumped out at me. Waiting around for a recovery while it goes sideways or down comes at the expense of gains you're missing out on had you accepted you were wrong and moved onto your next winner.
I don't know why but this somehow opened my eyes to what I already knew. So this morning I dumped my MSFT and bought some DRAM and SMH to hold while I do some DD and make some decisions. I made up almost half my losses in a single good day. It wasn't a huge bag I was holding but enough and for long enough that I could feel the drag it was causing.
Even if I have to buy back into MSFT at a few bucks higher down the road it still wouldn't be worth holding onto it for the next few months or longer while MSFT gets it's shit together.
That's all. I hope this helps someone else say goodbye to a loser and make some new gains. Please don't rub my face in it if MSFT moons tomorrow.