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December, 2021

Ending the year of 2021 with more losses.

This is difficult time of the year, and it is bad for a very simple reason.

The portfolio isn't looking very good.

This is the exact reason I don't trade for any client.

It is very easy for the investor to have confidence in you when the market is doing well, but when the market isn't doing well, you have to comfort the jittery client who is scared to death.

In a bear market, it is so difficult to stay put and not doubt your strategy and stick with it.

Doubt, and fear will make you want to recheck your work.

Why everyone's stock is growing, but your portfolio is still at a loss.

I have a friend who is in the investment field for quite sometimes, and his suggestion is to take a walk when the market is down.

"Walk it off!" "Get it out of your mind!" he loved to say.

I am still a big fan of him, since he was able to hold on to 2 stocks that was more than 80% of his entire portfolio for 47 months without any profit.

On his 10th year, he made 9 times the invested capital.

I was really curious how could he hold stocks for almost 4 years without a penny of profit, and still able to hold for longer.

This is how he replied:

"You want to make a huge profit in a very short time, because you are thinking like a speculator, you are looking thru the telescope for stock price."

"However, if you are thinking like an entrepreneur, you are looking at what you are buying with the money you invest."

"Price is what you pay, and value is what you get." he quoted Warren Buffet's words.

When you invest like an entrepreneur, you don't care that much about the stock price for the short term. You care about what value did you get from the stock price.

In another word, you want to buy the company's ability to make profit for the next 10 years with what you pay.

Instead of buying a stock thinking when its price will rise, think how much profit this company can make in the coming 10 years.

If this company is able to make 10 times the amount of money it's currently making now, the stock price has to follow... eventually.

Did any of you get what he meant?

I hope some of you do!

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