facebookShould I cut loss or hold for long term for Airline stock? - Seedly

Anonymous

22 Feb 2021

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Should I cut loss or hold for long term for Airline stock?

I have shares with SG airline for awhile (3-4years) and it is now negative 48% since the pandemic. Any advice?

Discussion (4)

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There is no right or wrong and it boils down to personal preference. Everyone's view on investments / losses / gains are very different so most important you must be comfortable with your decision.

I would say, if you are not in need of capital and can let it sit as "paper loss", hold it out for the longer term.

If you believe you can "come back another day" and invest in other stocks to recoup the loss, then cut it and move on to other stocks.

In investing, you win some and you lose some. Just make sure that your wins are more than your losses :)

Good luck in your investing journey!

Seeing your situation, 2 thoughts come to mind.

  1. The opportunity cost of leaving your money in this stock for the next several years.
  • What are the investment opportunities and gains you are giving up.
  1. How long is SIA going to take to recover and clear it’s debts
  • Though travel may resume after a few years, we must consider heavily how much debt the airline has taking on to survive as well. It will take an additional few years just to pay back the borrowed money, affecting its profits. At the end of the day, you are investing in a company not its stock.

Whatever your decision, all the best in your investing journey! It’s always painful to realize a lost, but sometimes it’s for the better. Make peace with it, learn from it and move on for the better!

Chris

16 Feb 2021

Owner and Writer at Tortoisemoney.com

Personally, I will cut it. There are much better stocks out there than SIA.

But more importantly, b...

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