What to Do When Your Market Winners Turn into Losers 8-21-25

Summary

Becker Business Podcast
Host: Scott Becker
Episode: What to Do When Your Market Winners Turn into Losers
Date: August 21, 2025

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Episode Overview

In this episode, Scott Becker addresses a common challenge for investors: deciding how to respond when previously successful investments (market "winners") take a downturn and become "losers." With recent examples from his own portfolio—including Palantir and Astera Labs—Scott discusses the psychological and strategic considerations behind staying the course, doubling down, or selling off declining positions. The discussion reflects on both past experiences and current uncertainties, offering listeners candid insight into decision-making amid market volatility.

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Key Discussion Points & Insights

1. Recent Market Downturns in Key Holdings (00:16)

• Scott opens by mentioning that the market, after sustained growth, has recently seen downturns in some previously successful stocks, specifically:
  • Palantir
  • Astera Labs
• These were two of his "biggest winners" that are now experiencing significant drops.

2. The Three Choices When Winners Turn Into Losers (00:44)

• Scott outlines the main options investors face:
  1. Stay the course – Hold through the downturn without taking action.
  2. Double down – Buy more shares, "buy the dip."
  3. Sell – Get out and cut potential further losses.
• "You really got three choices. You stay the course, you double down, or you sell the stocks." — Scott Becker [00:45]

3. Personal Approach: Staying the Course (01:02)

• Scott reveals his current uncertainty and lack of "clear conviction" on these stocks' futures, making him lean towards doing nothing for now.
• He references a lesson from personal history:
  • Selling in anxious moments often led to regret when stocks rebounded.
  • Cautious about doubling down since he's not fully convinced.
• "My current thinking... is it will simply just stay the course, hold through the dips, and hope that it moves back in the right direction." — Scott Becker [01:05]

4. Reflecting on Past Decisions (01:35)

• Examples include:
  • Selling a Bitcoin ETF during a dip—regretted not staying in, as it rebounded.
  • Selling a Cannabis ETF for a tax loss—never saw a rebound, so doesn't regret it.
• "I sold it when I held an Internet bitcoin, Bitcoin ETF. It ended up rebounding dramatically, in which I didn't sell that dip." — Scott Becker [01:47]
• "I also sold the dip and tax losses...on cannabis ETF, and that's never rebounded that much." — Scott Becker [01:55]

5. Broader Lessons for Investors (02:05)

• Stay invested in stocks for the long term.
• Avoid panic selling.
• The importance of having a "clear conviction" about stock choices.
• Honest admission: didn't fully research every position (bought Astera Labs "by happenstance"; Palantir was a more committed holding).

6. Final Thoughts (02:24)

• Investing is a constant learning experience amid ever-changing markets.
• Scott expresses gratitude to listeners and reiterates his fascination with market volatility.

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Notable Quotes & Memorable Moments

• On indecision and uncertainty:
  "Partly this is because of a lack of clear conviction around any of these things... I won't sell the dip, I won't buy the dip, I'll stay the course, and we'll see how that goes."
  — Scott Becker [01:10]

• On regrets and learning from past mistakes:
  "Throughout history I've gotten killed when I've gotten anxious and sold into this."
  — Scott Becker [01:30]

• On long-term investing and conviction:
  "Probably as important as anything, you want to have clear convictions about what you're holding and why you're holding it. I'm not sure I'm quite there."
  — Scott Becker [02:11]

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Timestamps for Key Segments

• 00:16 — Market status and examples of recent losing stocks
• 00:44 — The three main choices when investments falter
• 01:05 — Decision to "stay the course"
• 01:35 — Personal stories of selling dips in the past
• 02:05 — Key investing lessons and conviction
• 02:24 — Closing thoughts

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Takeaways

• Market downturns happen even to your best performers.
• Emotional responses, like panic-selling, can lead to regret—so having conviction and a plan is crucial.
• Sometimes, doing nothing (staying the course) is the best option, especially if you lack strong conviction either way.
• Past experiences—in both rebounding and persistent losers—inform current approaches.

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Tone & Style:
Scott Becker’s delivery is candid, reflective, and practical, marked by self-awareness and a willingness to admit uncertainty. This episode serves as a relatable snapshot for any investor facing the anxiety of seeing winners turn into losers in a fluctuating market.

Transcript

[A]

This is Scott Becker with the Becker Business Podcast and the Becker Private Equity Podcast. Today's discussion is what do you do when your winners become losers? Now, here's the deal. The market's been on an upward tier trajectory for some time right now. More recently, the last few days, some of the stocks that were invested in have become losers. They're doing poorly. Palantir has dropped significantly the last several days. We've also seen Astera Labs, one of our best holdings, drop as well. These are two of our biggest winners. So what do you do when your winners become losers? And you really got three choices. You stay the course, you double down, or you sell the stocks. And so my current thinking is, and partly this is because of a lack of clear conviction around any of these things, is it will simply just stay the course, hold through the dips, and hope that it moves back in the right direction. Reward for that. I don't know if that will be the case. I know throughout history I've gotten killed when I've gotten anxious and so sold into this. So we're going to try not to sell into it. But also, I don't have that clear a conviction on where either of these companies are going to sort of double down and buy the dip either. So. So from my perspective today, it's I won't sell the dip, I won't buy the dip, I'll stay the course, and we'll see how that goes in other places. I've sold the dip. I sold it when I held an Internet bitcoin, Bitcoin etf. It ended up rebounding dramatically, in which I didn't sell that dip. I also sold the dip and tax losses or, you know, the tax losses on cannabis etf, and that's never rebounded that much. I don't feel that bad about it. The real lesson here is, you know, you want to be in stocks for the long run, at least a good deal of them. You also don't want to panic sell. Probably as important as anything, you want to have clear convictions about what you're holding and why you're holding it. I'm not sure I'm quite there. I happened into their lab stock. I did buy Palantir with a true commitment to it. So we'll see how it goes. But thanks. Thank you for listening to the Becker Business Podcast and the Becker Private Equity Podcast. We sure find this fascinating to watch, what's going on with the markets and the constant changes and movements. And thank you for listening to the Becker Private Equity and Business Podcast. And the Becker Business podcast. Thank you very, very.