TLH for Facebook, ideas?

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InvestVS
Posts: 41
Joined: Fri Jan 05, 2018 3:19 pm

TLH for Facebook, ideas?

Post by InvestVS » Thu Oct 25, 2018 6:48 pm

I brought Facebook couple of months back when it went down due to privacy issue. However recently it’s been going further downs I have almost $7000 loss on that. More I am learning from this site, more I am bringing my portfolio to simple 3-4 funds based portfolio.

So based upon that I am thinking I should do tax loss harvesting on Facebook (sell it now at $7000 loss) and buy some other stock or ETF which have high holding in Facebook or similar companies. Then I am think of holding that stock or ETF till it is back to recover from my loss and at that time sell that stock or etf to move that money into right fund/etf based upon 4 fund asset allocation.


Please provide your input on that idea and recommend the etf options to TLH on Facebook. I am in highest tax bracket.

livesoft
Posts: 63045
Joined: Thu Mar 01, 2007 8:00 pm

Re: TLH for Facebook, ideas?

Post by livesoft » Thu Oct 25, 2018 6:55 pm

What about MTUM?
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badger42
Posts: 312
Joined: Thu Apr 09, 2015 9:01 am

Re: TLH for Facebook, ideas?

Post by badger42 » Thu Oct 25, 2018 6:57 pm

If you're really that keen on social media exposure, SOCL is pretty close to the only ETF out there. Over 10% FB, 0.65% ER though.

Or you could just distribute it among the portfolio you want long term (4-fund or similar) and consider it a lesson learned in stock picking / market timing (I've learned my share of those).

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Phineas J. Whoopee
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Joined: Sun Dec 18, 2011 6:18 pm

Re: TLH for Facebook, ideas?

Post by Phineas J. Whoopee » Thu Oct 25, 2018 6:59 pm

I'd like to suggest that maybe you're experiencing the behavioral pitfall called anchoring, that is, basing decisions about an unknown future on some past event. Waiting for price recovery is the textbook example, even though you have a two-step plan to do it.

Not everybody agrees with me, but here's my opinion: If one's portfolio is not suitable, one should change it to being suitable right away, although taking tax implications into account. Because you already have a loss, and presumably the investment is in taxable, that would mean to do it now.

I suggest tax-loss harvesting while it's clearly still possible (nobody knows what will be possible later), and then, if necessary, holding the cash until you come up with a reasoned - for you - asset allocation.

I do not suggest the two-step anchoring plan you propose, and therefore won't suggest any particular ETF to implement it.

PJW

rkhusky
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Joined: Thu Aug 18, 2011 8:09 pm

Re: TLH for Facebook, ideas?

Post by rkhusky » Fri Oct 26, 2018 6:35 am

InvestVS wrote:
Thu Oct 25, 2018 6:48 pm
So based upon that I am thinking I should do tax loss harvesting on Facebook (sell it now at $7000 loss) and buy some other stock or ETF which have high holding in Facebook or similar companies.
Sell Facebook and put the proceeds into Total Stock Market and/or Total International.

ge1
Posts: 400
Joined: Sat Apr 28, 2012 8:15 pm

Re: TLH for Facebook, ideas?

Post by ge1 » Fri Oct 26, 2018 6:37 am

I would buy NFLX and then you will likely have another fantastic TLH opportunity later this year :wink:

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