Rome Burning But CLQ Holding Up, page-201

I hope you didn’t average down in 2008.

You can always refer to BHP, largest miner in the world. Post GFC recovery tested the previous high of 50 bucks in 2012 from memory. Averaging down may or may not be profitable but what are the long term emotional cost. Consider the holding period of many years underwater with this strategy, would you get out break even when given the first chance.

A lot of my long term holds I purchased in 2015 only saw a very brief paper profit and spent 2+ years waiting in drawdown. This has caused me to reign in risk resulting in me missing many great sectors and stocks. Psychological damage of lost confidence. Fortunately a few did work great from day 1 to cushion the see saw emotions. Those lost opportunity cost and all I have to show was breakeven! Cut my losses and I could have bought again to catchup on those losses.

But we are all different and some horror stories in GSW SGH and biotech! What about TLS?