Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next
Author: tamhas Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 22328  
Subject: Re: Ten Bagger: two home-runs and a double Date: 10/12/2012 12:18 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 2
I can turn that 100K into zero through a string of bad 10K trades in the same number of trades it would take you to turn your 10K into 100K from a string of successes.

I think I understand what you are saying, but I still think the principle is there.

First, turning all 100K to zero takes some really spectacularly bad trading. It implies that not only does every investment go bankrupt, but that one blindly sits and lets it go that far without ever trading out. But, admittedly, by holding on it is certainly possible to turn $100K into $10K fairly quickly.

Second, I think your example is questionable because you are assuming that 90% of the portfolio is in cash, i.e., doing next to nothing. If that $90K is invested instead and grows even a little, it can offset the $10K loss thereby allowing one to keep investing $10K in stink bombs on a permanent basis! :)
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (20) | Ignore Thread Prev | Next


Kiddie Card Board
Should kids have their own credit card?
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Markel Corp.

Markel's Silver Year
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.