Investing in stocks isn’t easy. You have to stay on top of multiple companies and predict how the future will unfold. While investors confidently hold on to stocks during bullish cycles, many of these same investors fold during bearish markets.
Many Redditors discussed stocks they sold too early in a recent post that is gaining momentum. Some Redditors lost out on massive, life-changing returns just by exiting reliable companies during corrections.
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“If I waited a year, I would be 10x,” one Redditor stated when talking about buying Nvidia (NASDAQ:NVDA) in 2020 and selling at breakeven in 2022.
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One investor regretted selling Tesla (NASDAQ:TSLA) shares eight years ago. Another investor sympathized and said they also sold Tesla eight years ago, citing 10% daily swings as the main reason for exiting.
Tesla was one of the biggest winners during the pandemic and has gone up by more than 1,000% over the past eight years. While some posts contained nothing more than people talking about their losses, this one contains a valuable lesson.
If you invest in a company for the long run, you have to endure volatility. Sharp price swings are especially common for growth stocks that have tremendous long-term potential. Ignore the price swings and consider where the company will be in the next decade.
Another Redditor mentioned that they owned 1,000 shares of Netflix (NASDAQ:NFLX) about 18 years ago. Netflix doesn’t receive as much attention since the FAANG acronym is out of style, but it’s still a top-performing stock, especially for early investors.
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Netflix shares have gained anywhere from 30,000% to 50,000% since 2007, depending on when investors bought their shares. That’s a massive gain to lose out on, but 2007 was right before the Great Recession, so it was common for people to exit the markets frantically.
One commenter offered an interesting perspective on Netflix stock that highlights how some investors were thinking at the time.
“There were a lot of experts over the years, especially in the beginning, saying how other media companies were going to make [Netflix] irrelevant or basically put them out of business.”
