This Inbox section was created to share updates of my life to keep me accountable. As you may know, my investing style is to buy stocks/index-funds for a 5-10 year window.
Last Tuesday on September 22nd, 2 days before my 22nd birthday, I sold half my portfolio (~$13,000).
This wasn't out of fear of the markets. It was mainly to meet an external circumstance. Don't worry, it wasn't a kidnapping or anything bad.
Selling so soon was something I never had to consider until last week. It was a difficult decision to make, but I learned a lot. Which is what I'd like to share:
- I needed around $10,000
- I found out about it last Saturday
- Markets have been declining so that was a dilemma
Greed is a deadly thing. Despite knowing I had to sell, I kept stressing on the time to do it. I realized it didn't matter if markets were declining. I was selling for a profit anyway. Why should time to sell matter if I'm not losing money? It was the greed of wanting not to sell. Wanting more.
I was disappointed because I thought I'd be holding my positions for a long enough time to compound. The disappointment of selling my portfolio made me seek excuses to wait.
Once I realized this, I picked up my laptop and sold immediately on Tuesday morning. The weight from the weekend got lifted and I haven't looked back. What I sold:
- A 100% gain on Pinterest
- Two S&P500 Index Funds around a 50% gain
- An insurance holdings company that didn't generate or lose anything. (I was expecting a payout once interest rates changed, so you can imagine how long I planned to hold)
Looking back, selling my positions that Tuesday was a good decision. It eliminated my stress. Though I was disappointed to sell, I knew I had to keep emotions out.
That same day, I went out to eat ramen with some pals of mine. Gifts for my birthday were given in advance as well:
Yes, my investments didn't spend enough time to compound. But I'm thankful my friendships have.
On the bright side, I'm still young and know a lot more than when I first started. So I'll be taking my next investments seriously. I'll keep you updated on any results or thoughts I come across.