Monday, July 19, 2010

Revenge v/s Aim

If a person wrongs you intentionally or otherwise, you can either leave it and carry on with your more important things in your life or take revenge in a variety of ways(scheming, embarrasing, character assasination, confront him, etc). But if a company wrongs you by way of making losses(intentionally by fraud or otherwise), you cant take revenge in any effective manner. The company cant make up the money it has lost of its shareholders just because you didnt like it making losses. At maximum, you can try to change the management with your shareholder vote or shout at the shareholder's meeting or sell the stock and get out.
The best way to respond in the stock market for a company that has made losses for you is to dump it if you dont see any future prospect of it making profits and carry on with your life with other important things and opportunities. 
Everyone enters into the stock market with the aim of growing their portfolio/money/assets, but many of us hold back selling the loss making stock and want it to make up for the loss it has made. Sorry to dissapoint you, but get your emotions out of investing and start thinking logically. Dont forget that no one can take revenge on companies in the stock market and it would be fool hardy to be there holding the loss making company shares just to take revenge or blindly being hopeful on it. Dont miss the other opportunities while crying over spilt milk!

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