Unanticipated Benefits

I started to seriously pay attention to the posts on this board this year. Not just Saul’s sage and sane posts, I read just about everything that get’s posted here.

The composition of my portfolio has changed significantly, largely as a result. The performance of my portfolio has improved significantly, largely as a result. If you’re a regular reader here, that should not come as a surprise, it should come as the realization of a reasonable expectation.

But I’ve benefitted in another way which I did not anticipate. A few days ago CRTO took a dive for no apparent reason. I hold a large amount of this issue. When the price went down on no substantive news regarding their business prospects, I raised cash and bought more stock while it was on sale.

Yesterday AMBA crashed about 20% on zero substantive news that had anything to do with their prospective business performance. Only a specious claim that the stock was over-priced and an equally ridiculous assertion that the company was soon destined to face withering competition and become a commodity provider. Both claims are not new and both claims had been examined and dispatched previously on this board.

I raised cash and bought more AMBA while it was on sale.

The unexpected benefit is my new found ability to trust my research and analysis. Not too long ago I would have been second guessing. I would have had doubts and felt conflicted. I would have wondered about the hidden information held by some unknown individuals who were bailing out before everything falls apart. I might have panicked and sold my position.

But unexpectedly, with the herd stampeding in one direction, I am able to calmly graze on the sidelines and confidently meander in the opposite direction from the blind, frenzied herd.

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