One of my recent portfolio additions Beazley (BEZ.LN) has been skidding along the bottom range of share prices I considered natural volatility, unsurprisingly since around when I stocked up for my portfolio. This was due to an RNS indicating that interest rate changes were impacting this quarter’s revenues from their financial investments, when compared to YOY figures.
This might possibly have spooked me more than it did, but I supposed that it was probably not really a big deal given the bigger picture of the future longer term impact which should be positive. And not much of a concern against the backdrop of improving data on most of the other Insurers financial measures.
Maybe though this was not a view shared by many others, as recently the share price has continued to fall and has now crossed over into my stop-loss territory. Strangely though rather than allowing nature to take its course, and the stop-loss to occur as one should do using sound investment philosophy. I have decided that I know better, cancelled and have held-on way past beyond where I should have got out to protect my capital.
Now having made this error, I have the dilemma of biting the bullet and jumping out now with a bigger than planned erosion of capital (and loss of pride), or remaining patient and riding this one out back into the black. Which will surely happen. I think.
Incidentally the riding out of troubles of my speculative shares held in Ruspetro (RPO.LN) hasn’t exactly gone swimmingly well. In fact it is still languishing as a 40 something % loss. Which is why I am already regretting what is possibly another silly mistake albeit of a much smaller magnitude.
One thing is for certain though, this is the last time I am going to interfere with a stop-loss.
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