09/25/2024
๐ช๐ต๐ฎ๐ ๐๐ผ๐๐น๐ฑ ๐๐ผ๐ ๐ฑ๐ผ ๐ถ๐ป ๐๐ต๐ถ๐ ๐๐ถ๐๐๐ฎ๐๐ถ๐ผ๐ป?
A colleague of mine had an interesting chat earlier this year with someone who owned a large amount of Intel stockโabout $4 million worth. This person was confident. They were holding out for Intel to hit $50 a share, and when it did, they planned to sell and reduce the risk in their portfolio.
But my colleague suggested something a little differentโa strategy that would allow them to hold onto Intel's upside potential while protecting $3.4 million if things didnโt go as planned in the market.
They decided to pass on the idea. Fast forward a few months, and by July, their portfolio had already dropped 21%. By August, that $4 million had shrunk to less than $1.8 millionโa 56% decline.
One simple strategy could have limited the loss to just 15%.
๐ฆ๐ผ, ๐๐ต๐ฎ๐ ๐๐ผ๐๐น๐ฑ ๐๐ผ๐ ๐ต๐ฎ๐๐ฒ ๐ฑ๐ผ๐ป๐ฒ? Would you have waited it out or explored ways to protect your portfolio? If retirement was around the corner, would you be okay with that level of risk?
Iโd love to hear your thoughts in the commentsโhow do you handle risk when it comes to your investments? Letโs chat ๐๐๐๐!
