How to Respond When Your Investments Are Losing Money

Plenty of investors have bought great companies and seen dips in price.

Free Book Preview Money-Smart Solopreneur

This book gives you the essential guide for easy-to-follow tips and strategies to create more financial success.
2 min read
Opinions expressed by Entrepreneur contributors are their own.

In this video, Entrepreneur Network partner Phil Town discusses possible strategies you can use after taking losses on your investments.

The efficient-market hypothesis, a common and well-held principle in finance, assumes that asset prices reflect all available information, meaning that price drops in concert with a fall in value. In Town's experience, this is not to be believed. In his words, the value of a stock is not equal to its dollar value. 

Even investing maestro Warren Buffet says that you should not buy a company unless you're comfortable with it going down 50 percent. In fact, it can actually help if a target stock's price falls, because the true value of the company does not change with its pricetag. 

Click the video to hear more tips about handling fluctuations in your stocks' prices.

Related: The Key Traits of Patient and Successful Investors

Entrepreneur Network is a premium video network providing entertainment, ewitducation and inspiration from successful entrepreneurs and thought leaders. We provide expertise and opportunities to accelerate brand growth and effectively monetize video and audio content distributed across all digital platforms for the business genre.

EN is partnered with hundreds of top YouTube channels in the business vertical. Watch video from our network partners on demand on RokuApple TV and the Entrepreneur App available on iOS and Android devices.

 

 

More from Entrepreneur

Our Franchise Advisors are here to help you throughout the entire process of building your franchise organization!
  1. Schedule a FREE one-on-one session with a Franchise Advisor
  2. Choose one of our programs that matches your needs, budget, and timeline
  3. Launch your new franchise organization
Entrepreneur Insider members enjoy exclusive access to business resources for just $5/mo:
  • Premium articles, videos, and webinars
  • An ad-free experience
  • A weekly newsletter
  • Bonus: A FREE 1-year Entrepreneur magazine subscription delivered directly to you
Try a risk-free trial of Entrepreneur’s BIZ PLANNING PLUS powered by LivePlan for 60 days:
  • Get step-by-step guidance for writing your plan
  • Gain inspiration from 500+ sample plans
  • Utilize business and legal templates
  • And much more

Latest on Entrepreneur