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BP Oil Spill, Selling On Bad News

Yes, I owned BP stock!  It was up pretty big this years, until now.  I got a small gain, but not near as big of one that I would have if I sold the first day.

Why didn’t I sell my position in the stock on the first day for the new of the oil spill/leak?

  • I thought the spill would have been contained by now.
  • I thought it might recover some of it’s losses for that day the next day or so.
  • I didn’t realize how bad the oil spill was.

My gut instinct was to sell as soon as I heard.  They say that the oil leak may take up to 3 months to control.  Three months!!!  That’s a very long time.

Why was I in BP initially?

It had an 9% dividend when I initially got in!!!  It was a great oil dividend play (athough I only had a very small position).  It would be a great oil stock dividend play today if it wasn’t for that oil spill.

I’ve read online that people  like me are overreacting, but even if I am, the stock will still drop.

I feel bad for the New Orleans Shrimpers down there!  I don’t think there is going to be an easy answer!

Readers:  Sometimes, does seem that a dark cloud follow you in your investments like they do with me?

-MR

Update (05/05/2010) I jumped back in read it here!

4 Responses to BP Oil Spill, Selling On Bad News

  1. This is why I hate individual stocks, yet for some reason, I still buy. You can never predict when some strange event is going to occur. I was doing well with Adobe and then Steve Jobs had to go blasting Flash. So, my profits evaporated. For me, the struggle is when to react to short term news (if at all) and sell, and when to just ride out the storm.

    FWIW, I probably would have sold too… :)

  2. @Kris
    It seems like an investor has to constantly monitor individual stocks… and to think, it’s call passive income… ha

    I might buy back in now that it has dropped a little. It’s kind of fun for me. The bulk of my investments is in mutual funds.

  3. BP should have to pay 1,000,000 for every animal we find covered with oil. Tony Hayward is a fool.