Is Volatility Risk?25 Apr 2024 20:31
Hi everyone - I've been reading these posts everyday for about 6 months now (not sure why! Confirmation bias maybe?). I'm young and right at the very start of my investing journey. One of the first companies I ever bought shares in was Dest. God knows why I thought I knew anything at all about the pharmaceutical industry... but here I am. Everything else that I now own is the opposite of Dest (think boring, reliable, compounders) and Dest now makes up a very small part of my portfolio (even smaller today lol).
The whole rollercoaster of Destiny Pharma will remain an invaluable lesson to me about investing and epistemology. Overall, I think it has been an amazing emotional and psychological test.
Even though I will never buy another pharma stock for the rest of my life, I still own my shares and cannot see a reason to lock in losses. The fundamentals of the business appear to be unchanged and (although I admit that I don't really know anything) the share price seems to get dragged around by short-term speculation and market sentiment.
I understand this is a high risk investment and by nature, the share price will be volatile. But I wanted to try and ascertain how many of the people here are long term investors vs short term traders? Are you all the latter?
From my perspective, I'm happy to sit on my shares for years and own a chunk of a business that seems to have created something exceptional and are attempting to perform a serious breakthrough. I watched a video today from this YouTuber ‘Justin Waite’ and he said: “a company whose doing very well and everything is going to plan does not do a strategic review”... wow...I’m sure the entrepreneurs in this forum will be able to explain to the rest of us just how ludicrous of a sentence this is.
The legendary quote that seems to stand out to me, in the context of Destiny Pharma is: “The stock market is a device for transferring money from the impatient to the patient.”
As far as I can see, the only risk to my investment in Dest is the fundamentals of the business and my own decisions. Not the volatility of the market.