Who's right - help me settle a bet with gf, w/ poll w/o mspaint

[Kramer.]

http://en.wikipedia.org/wiki/Sunk_cost

[howzit]

you (stock owner) need to buy lots more shares at $20.
this will cost-average you down.
by my calcs, buying 300 shares at $20 will give you $40/avg price per share.

then she will have broken even with the man in the top coat. no risk!

PS: if she wanted to make more money, she should buy all shares available at $20. then when the shares go back to the original $100 stock price that she got in at, she will have made 5x as much!

[DannyOcean_]

OP -

Yes, your gf is a retard. She's even worse than a clueless blond. A clueless blond would just be like "lol stocks are hard i dont do those", but your gf is spewing retardation and actively believes she is right. This is FAR worse. If she is hot or good in bed, continue to take your bounty for a few more months, then leave. hit it and run so to speak. I can't imagine respecting anyone who can't understand things like this, and if she aint hot and rich i wouldn't give her the time of day.

Of course if she is hot and rich, marry her and hang tight for like 2 years, put up with retardation for good sex, divorce 2 years later FTW. Make some joke about her market value going down and how she'll never sell at the price she was at before when you tell her. loooooooool

[garcia1000]

I have asked a lot of my other friends and, although they aren't so dumb as to refuse the offer, they also hold on to this "Don't sell stocks at a loss" thinking. So I'm inclined to think that either

1) The sunk cost fallacy is a really common thing, or
2) My friends are dumb

Which is the case?

[CalledDownLight]

[ QUOTE ]
I have asked a lot of my other friends and, although they aren't so dumb as to refuse the offer, they also hold on to this "Don't sell stocks at a loss" thinking. So I'm inclined to think that either

1) The sunk cost fallacy is a really common thing, or
2) My friends are dumb

Which is the case?

[/ QUOTE ]

Is this a [censored] level? If its not then wow!

[garcia1000]

No, I haven't levelled anyone in this thread. I am serious, loads of people think this way.

How about this, everyone try asking five of your non-poker friends and report back the results?

[kyleb]

god damnit your girlfriend and your friends are idiots just accept this fact

[GTL]

the fact that your scenario has two options,

A.) own 100 shares of the stock

B.) own 100 shares of the stock and have 2k in your pocket

makes your gf very, very dumb. especially since she has obviously put some serious thought into the problem.

[AE6]

[ QUOTE ]


1) The sunk cost fallacy is a really common thing, or
2) My friends are dumb


[/ QUOTE ]
not mutually exclusive, duh

[CalledDownLight]

[ QUOTE ]
No, I haven't levelled anyone in this thread. I am serious, loads of people think this way.

How about this, everyone try asking five of your non-poker friends and report back the results?

[/ QUOTE ]

Is your bet with your gf which line of thinking is most common or which line of thinking is most logical/best from an economic standpoint/most +EV? If its the first then its possible that more people wouldn't sell, but if its the second then why the [censored] are you still arguing? Clearly selling is better assuming you don't hate money, which seems perfectly reasonable.

I just showed this thread to three guys that I was doing an econ problem set with and they basically laughed at the absurdity of not selling. None of them play poker.