The most common question that I have received through the contact form of this site is from beginning investors that suddenly find themselves in the position of receiving a sum of money that creates a need to learn how to invest. Sometimes, this comes in the form of stock investments inherited from a parent, grandparent, or some other benevolent actor.
A lot of times, this creates a situation that has an emotional component that complicates the otherwise straight-forward decision-making process of traditional asset allocation decisions.
Sometimes, if the stock in question has been successful for many years, you might start to believe that it has magical wealth-making powers (if the stock has declined 50% over the past fifteen years, it’s doubtful that you’d be wrestling with the question of whether to sell it now). You might have no idea what the heck United Technologies does, but if you see that … Read the rest of this article!