Miyoshi Limited

[sgmystique]

I am not sure if sometimes, we can see through our own heuristic biases? If we could have easily seen through it, then it wouldn't be called a "bias", isnt it?

hi sgmystique,
I don't doubt that "a bird in the hand, is better than 2 in the bush" - i have personally experienced highly profitable positions turned loss making eventually (S chips and O&G).

But i do find that many OPMIs are more than frequent caught up by "free shares", to our own detriment. I do observe that OPMIs sell down their profitable positions and the remaining shares become "free of cost", and (mentally) compartmentalized from their own capital. Since this is "free money" now, there is a tendency to treat this more frivolously - in the sense that when fundamentals really change and the right action is to sell, loss aversion is less intense because it is free, resulting in the right action not be taken.

I don't have doubt in your decision making process, just a point to make on the dangers (that i perceive) on the "free share portion". As for your loss cutting, it is inspiring to see that you have progressed over the last few years since the FF saga.

Well honestly I took a very big hit on the FF saga. Luckily I still survived to fight another day!

One's approach to investing as with a lot of other aspects in life is shaped by our personal experiences   What may work wonders with one person may just not gel with another. End of the day I am happy  as long as my investing makes me something additional over putting my money in 100% guaranteed fixed income instruments. And of course the learning along the way makes the journey most enjoyable.