Afflicted investors are unable to sell
obviously failed investments -- even after their original
investment thesis has collapsed -- because of an irrational
aversion to admitting error.
Victims of I'll-be-darned-itosis will
hang on to investments, confident that they'll be able
to break even down the road, even though superior investment
alternatives exist, and they could easily sell, take
a capital gains loss and reinvest their money more profitably
Experts advise investors to accept responsibility for
the mistake and move on. "We always ask our clients,
'Would you buy the stock today?'" says Matt McGrath,
financial planner with the Miami area wealth management
firm Evensky & Katz. "Every day you own a stock,
you are effectively buying it all over again."