Nike-NKE Lessons from history, Lose 75% to make 13410%
If a 75% decline will scare you out of a stock then I strongly suggest you never invest in stocks.
Stocks are a voting machine in the short term that only measures what someone is willing to buy or sell the stock at in the short run. In the long run (pun intended) the growth of sales and earnings (and hopefully a dividend) is what makes you money.
So, if you had bailed out using a simple "money management strategy to cut your losers at 50% or 75%", then you'd be out and you'd have missed the 134 times return.
Because if you can't afford to lose 75% first, then you will never make 130 times your money in your lifetime.
(The 2nd green box marks the 9/11/2001 level - NKE is up 919% since then)
Stocks are a voting machine in the short term that only measures what someone is willing to buy or sell the stock at in the short run. In the long run (pun intended) the growth of sales and earnings (and hopefully a dividend) is what makes you money.
So, if you had bailed out using a simple "money management strategy to cut your losers at 50% or 75%", then you'd be out and you'd have missed the 134 times return.
Because if you can't afford to lose 75% first, then you will never make 130 times your money in your lifetime.
(The 2nd green box marks the 9/11/2001 level - NKE is up 919% since then)
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.