I disagree. I don't believe that once it is no longer theirs it is necessarily mine. I believe it is mine when I have sold it and taken the gains.
As a friend of mine just said, his portfolio has been cut in 1/2, but he doesn't really care because he was only investing the money anyway. Were he actually using it as a means to an end (car, house, renovation), he'd have more worries. As it is, he doesn't care because his timeframe isn't today anyway. If he were to suddenly need the money and had to sell, then he'd be a bit upset. But he doesn't and he isn't.
I find that a bit more free and easy than my own approach, but it carries some similarities. I don't need it now, so the "loss" implied by the lower value is painful from the POV that what I once thought I had is no longer there. However, I had nothing before hand except the initial capital (now removed)...so I still have something that is much more than I once had.
If I needed this money today - the loss would pain me. I don't, so it doesn't. Since I still have the initial capital, my ability to jump back allows me to approach the market in a careful fashion. It isn't going to zero, so I won't lose everything, and if it goes much lower, there will be some significant values available (as there are right now) that I can take advantage of.
What you guys are concerned about are opportunity losses. My feeling is an opportunity loss is tough to swallow (everyone always feels bad earning 5% when they could've made 10%), but a gain is a gain and I won't quibble about the size as long as I am satisfied with what I got.
I can't live my life feeling bad about gaining 5% when my neighbor got 10%, especially if the 5% is better than I'd hoped for. All I can do is feel good for my neighbor and continue to wish him well. |
