Sometimes, it is sensible to hold on to a stock that has declined during a market meltdown, especially if you have reason to believe the company is still successful. Moreover, you would suffer double the regret if you sold it and the stock subsequently went up. But it makes no sense to hold on to losing stocks such as Enron and WorldCom because of the mistaken belief that if you don’t sell, you have not taken a loss. A “paper loss” is just as real as a realized loss. The decision not to sell is exactly the same as the decision to buy the stock at the current price. Moreover, if you own the
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