Lugareia’d
Lugareia (Loo-Ga-Ree-uh) - verb - meaning: To give up on a commodity by failing to let its value fully appreciate due to the misjudged prospects of a more foolish venture. ex. Man, if Theo Epstein had just given Orlando Cabrera that contract after ‘04, the Sox wouldn’t be so Lugareia’d right now.
Recently, I bought some stock in a company that I thought was a good short-term value. I held it for just a little while, collected my expected dividend, and thought he stock performed well and looked like it still had a lot of life in it, I sold it off and went for the flashy, more popular stock that had just dropped in value for what I thought wasn’t a very good reason at all. I sold and bought not because I saw a better value in my new holding, but because I hadn’t yet lost the old and felt the new was a better buy in spite of its higher price tag. I got Lugareia’d. I could have held my ground and let my initial investment mature, but instead, I had an itchy trigger finger and went for the flashy stock that was a great performer in the past and ignored the downward momentum that all others seemed to grasp.
One stock kept rising, and the new one has fallen to a level of low that I never would have expected. My mistake cost me a few hundred dollars. Often times though, these mistakes end up costing millions - not to mention the pain and suffering that those following the transaction experience.
Remember this if nothing else: Friends don’t let friends get Lugareia’d.
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