All investors and financial experts get it wrong from time to time and learn valuable lessons from the process. In this fool live Video clip, recorded on November 3, Matt Frankel and Robert Brokamp, ââThe Motley Fool’s own Certified Financial PlannersÂ®, answer a question from a viewer about things they used to think but now know better.
Robert Brokamp: Calvin asks, “What did you use to think that you now know you were wrong?” This is a really interesting question. I guess I would say I thought it when I was younger than I would like to retire sooner. Now, being 52, and in about 10 years, I thought I would like to retire. In fact, now I think I could work well into the late ’60s, or even’ 70s, as long as the Madman apprenticeship gets me around, maybe just part-time. It may only be part of the season. But I did more. First of all, I know I’m lucky. I love my job, so it’s easy for me to say it.
But also for my early retirement service and our answers podcast, I’ve just done a lot of research over the past couple of years on how retirement may actually not be healthy for people. It’s good to have a reason to get out of bed. It’s good to have intellectual stimulation. It’s good to have social interactions, which we used to have. We all met at the office and I hope that one day Motley Fool’s office will be open again. I think rather than retire early as I thought, I will probably be working at least part-time until I’m 70. Alright, Matt, what’s the matter?
Matt Frankel: I would actually add that I don’t necessarily want to retire early. I want to be able to retire earlier. This is such a good question that I want to add something that I thought was true. I used to think that there was nothing wrong with taking a profit on a stock no matter what. Hit the sell button if you were up and couldn’t lose. then I sold You’re here (NASDAQ: TSLA) stock to pay for my wedding in 2013.
Robert Brokamp: Oh man.
Matt Frankel: My split adjusted cost base is around $ 4 per share in Tesla and I sold it at $ 9 per split adjusted share. Today it is around $ 1,200 per share. I thought to myself, it’s good to sell because there is nothing wrong with taking a profit. I cannot regret having made an investment that has doubled. It was completely wrong. But I learned from that and if I hadn’t learned from that, I wouldn’t have kept the Square (NYSE: SQ) stocks that I bought right after its IPO for as long as I did. My wife wouldn’t have kept it Etsy (NASDAQ: ETSY) shares she bought for $ 6 a share so far. It was a hard lesson to learn and I literally could have bought probably five Model Ss with the money I had left on the table. But it’s something I thought I was definitely wrong about. There are good reasons to sell stocks. The simple reason, because they are mounted, is not one of them.
This article represents the opinion of the author, who may disagree with the âofficialâ recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.