Updated: Mar 17
A mid-week post because I see a lot of panic and uncertainty, and I feel 95% of my job is to abate these emotions. Yes, the market is slightly down, yes, my portfolio is down, yes, our picks are off highs. This is not a time to be selling out of fear, this is the time to be potentially slowly nibbling the fear. Nothing fundamental has shifted in our businesses, if anything they have strengthened after their most recent reports . I see far too often people buy high and sell low, I am here to tell you opportunity awaits for those who are patient. After 8 years of this it gets old and I just put my phone on mute, cannot wait till I am in this for 30 years and say the same exact thing.
Patience is a virtue holds true in this business, we must have the ability to wait for something with no emotion. I was conditioned to throw my emotions out the door on a day to day basis when it comes to market activity, we are here to do one thing. Make money. Those who panic sell, do not make money. I am a long-term focused investor who trades on the side, the businesses that I own had amazing reports and will continue to grow in the future.
Look, I do not want to sound basic , but markets go up and they go down. The only people I see worried and running for the hills are those who are leveraged in their portfolio, and I have seen that a few times watching it blow up (not me personally). Markets continue to have upward biases, we invest in stocks for the long-term buying and holding quality businesses.
I do not expect this selling to continue for much longer. I certainly cannot time the bottom, but I have been nibbling in my active account by adding NET, SHSP, LRCX, AMD. I own every holding as well in my long-term fund still, as seen below. Nothing has changed, sitting on your hands will be your best investment!
Please understand that the broader markets are hardly down YTD. (Source: Koyfin)
Personally I am back to account levels that I just saw in January. I would love to add to BL and PLAN here in my LT fund if I had fresh funds, but I can no longer add to that account since I am self-employed.
I think we are increasingly heading towards the bottom and the overall markets are only selling off harder and faster each time we have a correction. I will be giving quarterly performance updates on my LT fund, which will come out first week of April.
Stick to our discipline, focus on quality, and I just want you all to know I am right there! Emails are always open.
Panic is not an investment term.
Buffett has been a net buyer of stocks every year since he was 11, relax. We buy BUSINESSES, not the stock market.