Reason No. 5: It keeps you up at night. It is tough
to put a dollar value on peace of mind, but if we did, it would be a
pretty penny. If you have an investment whose fate has become so
uncertain that it now causes you to lose sleep, this could be a great
cue to move your dollars elsewhere. We are trying to reduce the stress
in our life here, not add to it. We save and invest to improve our
quality of life, not to develop ulcers. Adding insult to injury,
stressing about a stock might cause you to lose focus and make rash
decisions elsewhere in your portfolio. Remember, there’s no trophy or
prize for taking on risk in investing. Stick with what you’re
comfortable with.
While I am loathe to reference “The Gambler” when discussing our
investment philosophy, as the concept could not be farther from what we
preach, the Kenny Rodgers line “You’ve got to know when to hold ‘em”
fits. If there are reasons to fold ‘em, how do we know when to hold ‘em?
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