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The morning after April Fool's Day (appropriately), I placed my first-ever stock order, using the Foolish 4 stocks from the close of April 1, which included GM. Unfortunately, when I placed the order, I accidentally bought shares of GMH instead. What's the difference? How bad is this mistake, and more importantly, how can I rectify it? (hold and sell as if it were GM? Sell immediately and buy GM in its place?) Any advice will be much appreciated.
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Not a bad blunder! One of the better uptrending stocks on the big board. I would hold it. Just my opinion.

Umillt
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" how can I rectify it? (hold and sell as if it were GM? Sell immediately and buy
GM in its place?) Any advice will be much appreciated."

I'd go to the board for GMH and read all the messages to start my research. If I liked iot based on my study
I would keep it in my "other stocks" port. Set a price objective and sell when it seemed appropriate.

Also I would take some new money and buy the missing stock for my FF4 port. I really think GM is to important an ingredient in the FF4 to be ommited and if I did not have new money to invest I would sell the GMH
and buy GM.
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I agree with AK. GM has been my strongest performer in my F$ (started last summer).

Take a look at GMH. Keep it if you think that it meets your own personal standards. If you dump it now, remember that you are going to get hit with the 28% tax on any gains it had. Of course. If the stock dropped since you purchased it, then a 28% loss might help to balance the additional commissions of selling GMH and buying GM.

Bottom line: It's up to you to make that decision. We had another Fool who wanted to get into Intel so he bought INTL instead of INTC. It happens, don't worry about.

Like Bruce says, "someday we'll look back on this and it will all seem funny".

racerboy :-)
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What a blunder! :) I hope you held through 30Apr. I have owned both GM & GMH for years and I have made more profit off of H than the parent co. You will find that over time, GM averages about 7%-10% annual return. H will get you more like 12%. Check out how many of the new small satellite dishes you see on rooftops. This co. is one of the hottest selling products of the 90's. They are giving cable TV companies sleepless nights. No it's not Dell or Microsoft, but it does perform. Keep it a year, I think you will end up keeping it for a lot longer than that.
I only wish my blunders would turn out so well.
My most painful lesson was learning to trade seldom. Those commisions add up to a lot more than you realize over time.
Stay Foolish, you will get rich!
Tom
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<What a blunder! :) I hope you held through 30Apr. I have owned both GM & GMH for years and I have made more profit off of H than the parent co.>

Thanks to all and sundry Fools for your replies. What a dilemma! After accidentally buying GMH it's gone up almost 20% in the space of 5 weeks. I just can't bring myself to sell it so that I can buy GM to complete my Foolish 4, though I know I should. (I also don't want to get nailed with the taxes, truth be told). What if I kept GMH and my Foolish 3 until I can afford to restore GM to its rightful position in my portfolio (a few months)?
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<What a blunder! :) I hope you held through 30Apr. I have owned both GM & GMH for years and I have made more profit off of H than the parent co.>

Thanks to all and sundry Fools for your replies. What a dilemma! After accidentally buying GMH it's gone up almost 20% in the space of 5 weeks. I just can't bring myself to sell it so that I can buy GM to complete my Foolish 4, though I know I should. (I also don't want to get nailed with the taxes, truth be told). What if I kept GMH and my Foolish 3 until I can afford to restore GM to its rightful position in my portfolio (a few months)?
-reedcrow
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If the only thing keeping you from selling is that you don't want to pay taxes, then you will never sell anything at a profit, by definition. Not a very sound exit strategy.

I don't go out of my way to pay taxes. But I don't mind paying taxes, at all. It proves I'm making money!

=captc
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