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

22 Feb 2021

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?

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    Discussion (4)

    What are your thoughts?

    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!

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      Chris

      Chris

      16 Feb 2021

      Level 15·Owner and Writer at Tortoisemoney.com

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

      But more importantly, before you cut you should:

      1. Know why you entered the trade and whether the thesis still stands now

      2. Know why the thesis didn't play out

      3. Have an alternative investment to put your money to work

      This will help you improve on future investments and to prevent making the same mistakes again. All the best!

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