It’s important to think back to five or six weeks ago when our portfolios were down a bunch because the market had rotated away from fast growing stocks and into junk, and our portfolios were way down. On May 13, not so long ago, mine was down 18.5% (at just 81.5% of what I started the year with). Many were worrying that they should get out of our companies because all the pessimists were saying that it might be a permanent rotation (and they were telling you why), and that it might take years until our overpriced companies came back to where they had been. Just remember how awful you felt, and how scared, and how you were tempted to sell out.
Well here we are five later and Crowdstrike, Cloudflare, and Docusign, all closed the week at new all-time highs, and Zscaler, Lightspeed, and my portfolio are all within a couple of percent of all time highs, and my portfolio has risen 41% in five weeks. And this was while “the market’s” were down the last four days in a row, and this was “the market’s” worst week since February, and my portfolio tacked on 6.6% this week.
What’s the message: Selling a position because of a market rotation, with no negative change in your company’s business is a bad idea. Buy the best companies and hold them until something changes for your company, not because the market is rotating away from growth to cruise line turnarounds.
I hope that this has helped.
Links to the Knowledgebase for this board is in the Announcements panel that is on the right side of every page on this board. (It’s in three parts)