Chart, page-5353

This is always the hardest part of investing, when the stock keeps falling and it’s close to its all time lows. We start to question our hypothesis. Recriminations start to fly. Why was I so dumb to believe Richard’s story? Did I see what I wanted to see instead of really looking at the long drawn, capital hungry nature of this business?  Convictions start to fray. We start to question our beliefs. 

Worst, we feel distress over the loss of capital, even pain. Those who are financially distressed really want to get back the capital, what’s left of it, and plug the drain. The fastest way of relieving the pain is to cut loss and lick the wounds. I have been here many times in my 30 year career. Each time, it’s not any less painful. All I know is at the point of maximum pain, I usually cut to see the price recover, even to new highs. And then I hate myself even more for  succumbing. 

This is now the psychology surrounding this stock. I don’t have an answer for us. The tide may turn tomorrow or it may just drag on till 2020 when company turns profitable. No one knows and it’s the uncertainty that kills. Welcome to the world of investing. Musings on a quiet Sunday morning.