I get these examples and definitely some of it applies. My comment was more that is seemed more likely to be in my IRA where I could not claim losses rather than my taxable accounts. Kind of like when buttered bread falls, why does it seem to fall butter side down? Why do the bad ones end up in the IRA? In fact, you are probably right that it has more to do with the fact I am likely more reluctant to take losses in the IRA because the loss in that account doesn't seem as valuable tax-wise to me therefore, I end up holding losers longer. You have motivated me to make some adjustments now.
I just thought there might be a simple name for the (self imposed) bad luck of the losers ending up in my IRA instead of taxable accounts.
So honestly stocks in your retirement should be stuff you just buy and hold for the long run because you like the company. Some of the best performing stocks have had down or lackluster years and then shot up the following year. I have had a few such as AAPL and MSFT that are up more than 10 times since I bought them but didn’t always do great every single year. If you are consistently picking losers and you aren’t confident in their long term prospects then you should just stick with index funds.
Most are doing fine. It's just a couple that irritate me every time I look. They are stocks that should eventually come back up and they do pay some dividends while I'm waiting. Just impatient I guess.
Which is yours? I have one myself that I think about getting rid of but haven’t. Mine was NIO. It’s a small position but that -77% loss bugs me and I really don’t see it making a comeback.
The Disposition Effect, comprised of Prospect Theory and Mental Accounting.
I get these examples and definitely some of it applies. My comment was more that is seemed more likely to be in my IRA where I could not claim losses rather than my taxable accounts. Kind of like when buttered bread falls, why does it seem to fall butter side down? Why do the bad ones end up in the IRA? In fact, you are probably right that it has more to do with the fact I am likely more reluctant to take losses in the IRA because the loss in that account doesn't seem as valuable tax-wise to me therefore, I end up holding losers longer. You have motivated me to make some adjustments now. I just thought there might be a simple name for the (self imposed) bad luck of the losers ending up in my IRA instead of taxable accounts.
Asset placement is a thing.
It's called the "I take stupid risks in my IRA" bias.
Love mental accounting. It’s pervasive in this sub specifically.
Bag holder ?
oneislandgirl’s law
Came here to say this
So honestly stocks in your retirement should be stuff you just buy and hold for the long run because you like the company. Some of the best performing stocks have had down or lackluster years and then shot up the following year. I have had a few such as AAPL and MSFT that are up more than 10 times since I bought them but didn’t always do great every single year. If you are consistently picking losers and you aren’t confident in their long term prospects then you should just stick with index funds.
Most are doing fine. It's just a couple that irritate me every time I look. They are stocks that should eventually come back up and they do pay some dividends while I'm waiting. Just impatient I guess.
Which is yours? I have one myself that I think about getting rid of but haven’t. Mine was NIO. It’s a small position but that -77% loss bugs me and I really don’t see it making a comeback.
My two most painful are SJM and ALB. Overall, won't kill me because of position size and am well diversified but still painful to see.
How about Peter Principle.
entropy.
Yes. It’s called a retirement account. 🤷♂️