A bit of reality....

I find myself quite short on courage after losing several chunks of flesh from poor choices of the past (due to lack of knowledge and adequate DD). But also especially the last couple of years when the market has been in my view very bullish (especially since brexit). I find it considerably difficult to put new money to work somewhere keeping 15-20% cash for some time now.
Haven’t done badly… basically even with the market over the past 20 years even with an occasional painful lesson. So at least consistent in mediocre returns.
Often with stocks like SHOP or similar if you happen to climb on board at the right time they seem to go up so quickly it doesn’t give ample time to adjust and put more money to work in them. I guess there is an an adjustment needed in high growth stocks that I am not used to so when they start “getting away” from me I simply let them run instead of adding.
Reluctant to sell and then plan to buy back on a dip doesn’t work for me so my typical response it to continue to let them run. I have learned this the hard way by taking profits that turn out to be quite small as opposed to simply holding them long term as long as the returns are steady.
Good discussion…thanks!
Hope had a good Easter…

4 Likes

Hi Soy:

I find myself quite short on courage after losing several chunks of flesh from poor choices of the past (due to lack of knowledge and adequate DD). But also especially the last couple of years when the market has been in my view very bullish (especially since brexit). I find it considerably difficult to put new money to work somewhere keeping 15-20% cash for some time now.

I’m assuming you are referring to one of my posts because I used the Term “To Have Courage”

The market can sometimes paralyze you into doing nothing like a deer on a dark night staring straight at your headlights in the middle of the dark windy road as you get closer every second. Its not a good position to be in, especially since the deer won’t move, the only one that can do anything to remedy the situation is you.The deer won’t move. If you don’t act in a positive manner, you will have trouble.

Try a very minor upgrade to your portfolio–I’m sure you have both winners and losers in you portfolio. Try selling a few shares 25-50 or 100 of the worst performing stock in your portfolio and using the same proceeds in adding 10-20 or more shares to your best performing security in your portfolio–
You will have the same money invested in the market–You will have the same 15%-20% cash cushion to protect you–You will have incurred a deductible tax loss and you will have a few more shares of your best stock growing for you–And in addition you didn’t have to make any new investment that consist of new overpriced stocks .

The deer won’t make the move, so it really has to be you.
Good luck

b&w

5 Likes

I’m assuming you are referring to one of my posts because I used the Term “To Have Courage”

The market can sometimes paralyze you into doing nothing like a deer on a dark night staring straight at your headlights in the middle of the dark windy road as you get closer every second. Its not a good position to be in, especially since the deer won’t move, the only one that can do anything to remedy the situation is you.The deer won’t move. If you don’t act in a positive manner, you will have trouble.

I agree entirely with the idea but I believe that it is not a question of courage but of determination. I’ve written about a similar topic as follows:

"My conclusion was that decision making ability is the key. A manager who can make decisions quickly, not too worried about being wrong, but willing to admit his mistakes and to correct them, will be the more efficient manager. "

Just substitute investor for manager.

Denny Schlesinger

1 Like

Denny:

I agree entirely with the idea but I believe that it is not a question of courage but of determination. I’ve written about a similar topic as follows:

"My conclusion was that decision making ability is the key. A manager who can make decisions quickly, not too worried about being wrong, but willing to admit his mistakes and to correct them, will be the more efficient manager. "

Are you a shrink? You write about people’s misery? And give it names?

b&w

Are you a shrink? You write about people’s misery? And give it names?

b&w

I though the subject under discussion was the qualification of successful investors (bravery vs. resolution), not the profession of the Fools joining this thread. Why the need to change the subject that you brought up?

Denny Schlesinger

Hey guys, This thread is turning into an increasingly argumentative back-and-forth between the same two members. Why don’t we drop it before it turns into real anger and bad feelings.
Thanks,
Saul

14 Likes