Brady6
Pro Bowl Player
- Joined
- Feb 5, 2013
- Messages
- 15,687
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Stock is a much better example. Let us presume that there are no transaction charges. Given that current online trading charges, that is almost accurate. Let's also ignore tax consequences. Let's be in an IRA.
Every day, you make the choice whether to buy or sell each stock you hold at the market price. It is really that simple. It make exactly zero difference what you paid for the stock or how it has performed in the past. One of the most common mistakes of investors is to fail to sell because of past history (what they paid and prior earnings).
He is not a stock though, he had an up front, which you could call a “down payment”, and then future payments go towards maintaining the same exact entity. When you buy stocks, you receive more of them; you can diversify into different stocks. Amendola is the house you put a down payment on, everything you pay forward is to maintain, and retain the house, you are not getting more Amendola’s.












