I lost a lot of money on Rivian after the stock hit a record low. What does everyone recommend to recover? FOMO hit me as the stock went up shortly after IPO and bought in at $145. Now with it at $97 a share I'm deep in the red. Help!
Sitting on your hands is definitely the best thing to do now and to those who can, get in more now but with good risk management.You have many options, 3 options are:
For full disclosure, I am in a similar position (I waited for it to drop after it hit over $140 but apparently didn't wait long enough). I have a side IRA account that all I invest are in green companies so have 20+ year horizon on the account.
- Sell now and take advantage of the loss in your 2021 taxes.
- Buy more stock and average down your cost basis.
- (my recommendation) RELAX. If Tesla is any indication, Rivian stock will fluctuate greatly in the coming years. Unless you need the cash, just sit on the stock.
"STRONG HANDS " add to it and hold it for 2-5 years and it will be a winner!! You don't buy it and sell it, only if you are a TraderI lost a lot of money on Rivian after the stock hit a record low. What does everyone recommend to recover? FOMO hit me as the stock went up shortly after IPO and bought in at $145. Now with it at $97 a share I'm deep in the red. Help!
I cannot disagree with this statement more. There is no way anyone can say that Rivian is a generational investment today. It may become that one day, but not today.Rivian is a generational investment that will play out over the next 20-30 years. Looking at the stock price on a day/week/monthly basis is not the right way to go. If you agree with the thesis, then park it (or do some of these other near term strategies to balance your position) and look again every year.
Fwiw, Seeking Alpha just made it a buy recommendation based on today's price. None of that really matters. We just have to watch to see if quality holds up and deliveries ramp up.
You misunderstood my point (and apologies if I wasn't clear enough). My point was that it's going to take a generation (well... at least 10+ years) for Rivian to play out - and we don't know how it will play out but it's going to take time. I am in no way calling Rivian as the next FAANG. Whether you buy and hold, dollar cost average and whatever strategy you want, it's not an appropriate momentum or any other kind of short term play IMO.I cannot disagree with this statement more. There is no way anyone can say that Rivian is a generational investment today. It may become that one day, but not today.
I bought Tesla shares (pre 1:5 split) shortly after their IPO and bought and sold their shares at various points as prices fluctuated significantly. Thereafter, I bought back in about a year before split and sold 1/3 of my total Tesla shares near the high this year. It is one of my core holdings today, but it wasn't at the same point Rivian is today.
The point is just buying and holding a new company like Rivian believing that its a generational investment (e.g., Apple, Microsoft) is not a good strategy in my opinion. I am just a private investor and not a trader or advisor. Just a stock picker in the areas I understand.
The way I look at all the EV startups today is very similar to early 1900's when there were lots and lots of automakers. Vast majority of them failed or got bought out by the time WW2 came, and further consolidated into the 50's. None of us know where Rivian will end up. If they fail for some reason, it is all likely that Amazon would just take them over and retain its name. It is also possible that one of the majors (GM, F, Stellantis or Daimler, VW) would sweep in to take over so the brand will exist but the equity will not at that point.