Trending Assets
Top investors this month
Trending Assets
Top investors this month
The Art of Execution
I figure now is a great time to share Gavin Baker's review of the book "The art of execution"

Tax loss selling & The January Effect are two terms that many growth investors are clinging to right now. Tax loss selling helps explain why small cap growth companies were beaten down into the calendar year end & The January Effect gives hope that these companies are due to bounce back.

I personally had no reason to exit losing positions in order to offset my gains as I am not mandated to optimize for taxes. I consider capital gains to be a good problem to have and if I do sell my losers I simply just realize that loss in 2022 instead of 2021.

I do however need to apply the lessons from Gavin's book review to my current portfolio. I have losing positions that I am hoping benefit from the January Effect but there is no guarantee that happens and hope is not a strategy.

Perhaps I got cute trying to catch a falling knife in $PTON as I still liked the business despite the whirlwinds of negative PR. Currently I am -21% from my entry but do have enough dry powder to average down. The lesson from this book review is that I must decide on a course of action; either average down or exit the position. Sitting around and waiting to breakeven is not the best course of action.

My core takeaway was that portfolio management is just as important as stock selection and I hope others can benefit from the frameworks outlined in this book.
YouTube
Can We Trust Peloton's Management?
Thinking about investing in Peloton? The AlphaBets team covers:Can we trust Peloton's Management?Does Peloton have a moat?Is Peloton actually a social networ...

Related
Already have an account?