If one owned 15k B-shares and sold 500 shares recently at $320, but bought them back a week later at $297…Did he make $11+ on the trade…or did he lose a couple hundred grand+??? I think this is why my trading has always worked well, but never felt good at the time.
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“If one owned 15k B-shares and sold 500 shares recently at $320, but bought them back a week later at $297…Did he make $11+ on the trade…or did he lose a couple hundred grand+??? I think this is why my trading has always worked well, but never felt good at the time.“
Sorry! I don’t understand this at all. Can you please explain?
Thank you.
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You made money on the trade. You have retained your # of shares and found a way to make 10K. Feel happy.
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Don’t think of it as the profit you’ve made.
You still have the position, so you don’t know yet.
That’s why it’s hard to think about it.
Rather, think about it as a reduction in your entry price / breakeven price.
Which is real, and good.
Jim
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Sorry! I don’t understand this at all. Can you please explain?
He’s just trying to decide how to think about selling 500 shares and then buying them back cheaper.
If he considers the 14500 shares that he didn’t sell, then they are worth 14500 x $23 = $333500 less than when the stock was at $320.
But if he chooses to only think about the 500 shares he sold and bought back, then he gained 500 x 23 = $11500
This is a pleasant conundrum
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Thanks. I was confused that he might have worried that he could have put that money into a growth stock or something, instead of back into Berkshire, thus losing the opportunity to have made several 100 of thousands. Wouldn’t have been my thought – but you never know what some people think.
However, his name is VIIIandXX so I guess I shouldn’t have worried.