Reality Check

New to this board, thank you to Saul and others for the numerous contributions.

As a relatively immature investor, I am aware that I have yet to experience a long-winded, gut-wrenching down period. What are ways that we keep ourselves in check during a period of unparalleled gains? How do you remember difficult times from the past, and keep a keen eye for signs in the future?

Cheers to my capital-F Fools!


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Read the Gorilla Game board posts here on TMF from 1999 thru 2001.
Measure the stock prices of the stocks then and now…many have yet to retrace those 2000 bubble highs 18 years later. CSCO, JNPR, QCOM. Plenty of companies gone/absorbed too: JDSU, RBAK, AOL, etc.
MSFT just retraced their highs in past couple of years and is only now surging ahead. Waiting 18 years for a 20% gain is a tough LTBH strategy.

Questions were raised on that board about valuations, TAM, and ultimately exit strategies.
It became apparent that there was no exit strategy. I think it is good to have one of those.



The Gorilla Game board

Took some digging around. I take it this is the Gorilla Game board I hear so often talked about?

My apologies if this is posted somewhere in the knowledge base.


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First rule is don’t have any money in the market that you’ll need over the next 5 years. Then invest according to your risk tolerance…how much downturn can you stomach? By following that first rule I’ve never had to change investments based on the market performance. Now that I’m retired, it has taken some adjustment getting used to not having a salary. I allocate a percentage in Saul growth type stocks, which has been growing to a larger percentage! Still it is balanced by the rest of the portfolio, and if the market turned sour I would still ride the storm as in the past. That’s my risk tolerance. Hope that helps.