I’ll admit I’m not the best at this investing thing. A few years back, I picked up some stocks that are now basically worthless. We’re talking pennies on the dollar, and they look terrible in my portfolio. Selling them feels pointless because they’re worth so little, but I’m also tired of seeing them every time I check my account.
Should I just sell these and move on, or keep holding onto them? Maybe someone here has some advice for what to do with these deadweight investments. For anyone curious, my worst calls were Nikola, Upexi, and Tilray. I also have others down 70%, so my portfolio’s a mess overall, but these are the ones bothering me most.
The problem with doing it at year-end is that everyone else is selling off for the same reason, which can make prices tank further. Sometimes waiting until January or February gets you a better price.
Tax loss harvesting isn’t about future performance—it’s about using the loss to offset gains on other investments. If you’re holding onto something just because it might go up later, that’s not tax loss harvesting; that’s hoping.
If you think the price will rebound after the tax season, you’ve already decided it’s worth holding. Tax loss harvesting is a salvage move, not something to plan for future performance. Decide if it’s worth owning now, not based on what it cost before.
Here’s a simple way to look at it: if you had the cash equivalent of these stocks today, would you buy them? If not, sell them. The rest is just emotions.
You didn’t sell because you got emotionally attached, hoping it’d bounce back. That’s why timing the market doesn’t work. Look into index funds and stick to a plan.