When should investors sell? Can we learn from Woodford troubles?
When should we acknowledge that our investment choice was wrong, and sell? Neil Woodford’s latest troubles bring this question into sharp focus. However good our research we can all be not just wrong, but badly wrong.
Warren Buffett’s first rule of investing is not to lose money. You should not put yourself in a situation where you find yourself performing mental gyrations to justify your original decision while uncomfortably sitting on losses in excess of 50%. Here we explore this and the straightforward solution.