Hmmm … Je t’aime Inc … a solid performer … clearly undervalued. It’s a great fit for your portfolio. Yes, you’ve invested foolishly before, but you’re smarter now and this time you’ve done your homework. Je t’aime is perfect for you. So you take a leap and make that initial commitment.
And you were right. Your investment grows and the company pays you generous — and equally important — consistent dividends. In fact, Je t’aime is one of the best decisions you’ve ever made – it’s an incredible performer. So as your investment grows, you continue pouring more of your resources into it, thus increasing its prominence in your portfolio. Like all companies, Je t’aime occasionally suffers hiccups, but each time it breathes deeply into its corporate brown bag, recovers, and again rewards your commitment with welcome returns. And for many years the two of you have a mutually very beneficial relationship.
And you love this company.
Then one day management takes a detour. Dividends decrease and the value of your investment begins to decline. But you and the company have been together so long — and you’ve put so much into it — you won’t jump ship now. This is just another hiccup, you think. It’ll turn around. Besides, you don’t sell in a down market. Your focus is long-term and although you’re not getting the dividends you want right now, they’ll be back and Je t’aime will again resume its pattern of growth. It’s a good company; it’s had a great history and you’re confident it will once again give you the returns you’re seeking. So despite the numbers and the naysayers — and the butterflies you optimistically suppress — you hang in there.
You still love this company.
But Je t’aime doesn’t turn around. You’ve ceased to be a valued investor; there are no dividends. Not only is there no longer any growth, it’s clear the investment you’ve made over the years is rapidly dissipating. Your advisors whisper “we told you so long ago.” Finally you swallow your pride and accept a truth you realize you’ve denied.
Because you loved this company.
It’s time to take your remaining resources and invest them elsewhere — while you still have that opportunity.
But girl, on the other hand, perhaps you should just shove them under your mattress and keep your ass out of the market so you don’t screw up — again.