when to let go or how to re-distribute

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With 16K, I invested in 15 stocks. I did some research on your website and Yahoo! Finance in order to pick stocks for my portfolio and was able to get started in mid-April. Seven of them are doing quite well so far. The AQN, BPY.UN, EMP.A, FTS, L, RCI.B, and SIS ones are losing money. Can you give me some advice on what I should do with those? Some say there will be a U-shaped recovery to take place, and I am wondering when do I let go if I keep losing money on a stock? Is this just part of how things go down first before they go up? What if a company folds up? As I plan to retire in 13 years, will there be some stocks that I can hold on to that long?

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Asked on May 1, 2020 6:19 pm
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Hi there,

Most all the companies you listed there are very high quality stocks. I would not be bothered by short-term losses. Markets go up and down, and your time frame spans more than a decade.

Think back to your investment thesis. Why did you buy these stocks in the first place? Was it for a short-term trade or long-term investment. As a long-term investor, you will see ups and downs - especially now as the markets are highly volatile.

If the investment thesis on a holding has changed for the worse, then investors should consider perhaps moving on. If it hasn't then why sell? Of the ones you mentioned that are losing money, has anything changed?

Of the stocks you mentioned, all make excellent long term holds. AQN and FTS are leading utilities, RCI is a top telecom and L and EMP.A are leading grocers. Neither are going anywhere. BPY has struggled because of its exposure to retail, but Brookfield is one of the best names in the industry. Finally, SIS is not as large as the others but operates in a strong growth market and has proven to be an excellent industry consolidator.

Of note, I own FTS and SIS and intend to hold them both for more than a decade.

Mat

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Posted by Mathieu Litalien
Answered on May 1, 2020 7:08 pm
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