Hacker News new | ask | show | jobs
by sumedh 3293 days ago
Well it is when you are dealing with huge amount of money.
1 comments

Really ? You think holding on to a massive amount of shares in a growing organisation is a difficult thing to do ?

And in comparison to actually growing a company that is worth a similar amount its childs play,

Well, look at Microsoft's $150M investment in Apple in 1997:

https://www.engadget.com/2014/05/20/what-ever-became-of-micr...

By 2001, MSFT had 18 million shares of Apple, sold by 2003. Later a 2:1 and then a 7:1 stock split, would give them a value of $36 billion today (if my math and the article's math are correct), but was sold for a relatively small profit instead.

It's harder than you think to hold onto a massive amount of shares in a growing company.

You have supplied one bit of anecdotal evidence, you want me to list all the people/companies who held on to apple shares ?
There are lots more, here's a more systematic study from Fidelity:

" The average investor lost money in the Fidelity Magellan fund under Peter Lynch’s tenure during a period of time when the fund returned around 29% annually."

http://www.innovativewealth.com/wall-street-wisdom/individua...

It's easy to look back and say, wow, if I had invested at that time, I'd have $x m/b, but the temptation to "lock in gains" or "diversify" is really strong. And sometimes it is right!

A systematic study, oh ok which study is that then - there is no link provided ?

The link you provided is just one persons essay.

And sometimes people sell for other valid reasons, they need the cash even though they think its still a good long term investment.

The original point was that yahoo and marissa meyer hardly set the business world alight by holding (not even buying), just holding, alibaba shares.

> A systematic study, oh ok which study is that then - there is no link provided ? The link you provided is just one persons essay.

Well, that makes two more links than you've provided.

Sorry, can't find an original source link online (it was from before the interwebs, after all), but here's another with more quotes from Lynch, and google will find lots more:

http://ivanhoff.com/2016/10/23/five-market-insights-from-pet...

Yahoo definitely was successful with the Alibaba investment, whether through luck or good decision making - though I agree, the rest of their decision-making lends weight to the "luck" evaluation.

No dispute at all that they showed no competitive advantage in managing their actual business.

Even someone like Warren Buffett complains that he has sold some his investments too soon.
Yeah. He also made a gazillion dollars holding.
Yeah but even someone like Buffett sells too soon which is what happens when you are dealing with huge amount of money.