🐴 𝗧𝗵𝗲 𝗗𝗲𝗮𝗱 𝗛𝗼𝗿𝘀𝗲 𝗧𝗵𝗲𝗼𝗿𝘆

𝗜𝗳 𝘆𝗼𝘂𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗶𝘀𝗻'𝘁 𝗯𝗿𝗲𝗮𝘁𝗵𝗶𝗻𝗴, 𝗴𝗲𝘁 𝗼𝗳𝗳! 🚩

There’s a Dakota Indian proverb that’s pure gold for those of us navigating the markets: "When you discover that you are riding a dead horse, the best strategy is to dismount." 💀🐎

Seems obvious, right? Well, in the investing world, many people seem to have a thing for financial necrophilia. Instead of selling a position that no longer makes sense, investors (and companies) get "creative" just to avoid admitting the horse has kicked the bucket.

I’m sure these "strategies" for trying to make the beast walk sound familiar:

• Buying a stronger whip: Also known as DCA (dollar-cost averaging) into a company with a broken business model. "If I throw more money at it, surely it’ll revive." 💸
• Changing the rider: Hoping a new CEO will work miracles while the entire industry is sinking. 🎩
• Appointing a committee to study the horse: Re-reading the quarterly balance sheet for the tenth time, looking for some irrelevant data point to justify why you haven't sold. 📊
• Comparing the horse to others: "Well, my neighbor's horse is even deader than mine, so I’m not doing that bad." 📉
• Claiming the horse has always been this way: The famous "it’s a long-term investment" excuse, used right when your initial thesis went up in flames months ago. 🤡

🧠 𝗢𝗽𝗽𝗼𝗿𝘁𝘂𝗻𝗶𝘁𝘆 𝗰𝗼𝘀𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗿𝗲𝗮𝗹 𝗸𝗶𝗹𝗹𝗲𝗿

The problem with staying on a dead horse isn't just that it won't take you anywhere—it’s that it prevents you from climbing onto one that’s actually alive. While you wait for a miracle that isn’t coming, the market keeps moving, and you keep losing time and capital.

If your investment thesis no longer holds up, if the fundamentals have changed, or if you simply made a mistake (which happens, a lot), don't try to resuscitate the corpse.

Accept the loss, get off the beast, and find something with a pulse.

The stock market doesn't hand out trophies for being loyal to your mistakes.