They keep coming to our board to tell us doom is right around the corner (it might be). That our stocks are over-valued (they certainly may be). That pride runneth before a fall, and all the rest (I’m sure it does). That statistics prove we can’t do better than the averages and we’ll all return to the mean. That we should be in ETF’s, and on and on.
But I don’t know how they have the fortitude to keep coming here and lecturing us in spite of the reality of what we are accomplishing. They were gleeful in February when it looked as if we were going to have our comeuppance, then again a few weeks ago, but we just keep moving up in a fairly stagnant market.
As I write this I am up 44.6% so far this year (four and a half months). No leverage. Others who have used leverage have said they are up even considerably more. (Too dangerous for me and too much trouble). The S&P is up 2%, or something like that. Since the beginning of 2017 (a year and four months ago) my portfolio is up 166%. Not one lucky stock, the whole portfolio! That makes it more than two and a half times what it was back then.
Sure doom may be around the corner. Sure a Bear will come eventually. Sure some people feel some of our stocks are overvalued. Citron certainly does. But should we have passed on all this incredible run-up because of it. We sure have one heck of a cushion if it comes. Trying to guess when would have had us out a year ago. No thanks. I’ll keep enjoying life, and the gift our combined stock-finding and analysing has given us. Thanks to all for your hard work.
I know exactly what they’re thinking cause I’ve had the same thoughts. They’re envious. If your method works better than their method it means they’re wrong, could have done better and that they may have to re-think their strategies. It makes them feel stupid. It could mean that they admire the method but lack the temperament, or maybe courage, to implement a highly concentrated portfolio. I say this as a fella who’s only partially invested in the Saulinian universe and is only up a mere 7% or so this year - an amount I’m thrilled with compared to the market. But when I see guys say they’re up 40% it stings the tuchus like a good wet towel-thwack.
Bottom line, any time you do something better than someone else, they’re going to throw stones. It’s actually the highest compliment. Being able to endure the slings and arrows of the covetous should be taught in schools. One can only imagine how many great people, with thinner skin, gave up on their righteous path to conform, to avoid taking fire.
One real cocky, elite young executive I used to work with used to proudly proclaim “They don’t boo nobodies.” There’s a reason “Thou shalt not covet” is a 10 commandment. It leads every kind of spiritual malaise and crushes performance.
In addition to that is that we don’t know how diversified these complainers are.
After following this board for about two months now then I’ve cut back my portfolio a lot since there were just too many stocks which were recommended by TMF which I had invested in but unable to properly track.
Like Saul, I’m retired so should have the time to do DD on all my investments on a monthly basis but when the number of stocks hits 40+ then I simple can’t be bothered.
So now I’m in the process of trimming my portfolio down to about 10 stocks mainly due to the amazing insights that Saul and most other people on this board have given me.
I may well trim further than that, but will see how it goes.
Yesterday’s article by TMFDanielSparks was very well timed: https://www.fool.com/investing/2018/05/13/diversifying-your-…
Cheers, PB.
Thanks again Saul (and all other contributors to the board)
Happy to be along for the ride. Hoping to contribute what I can…
Have a Great day everybody
It took me a year and a half to drop from 140? stock portfolio to one that runs between 12-15. I went from under performing to over performing. Culling “fair/ok” stocks was the main secret sauce.
I would suggest that MF introduce a new service called the “Concentrated Portfolio” service (max 20?). Frequent (daily/semi-weekly)reviews of the existing stocks/potential new stocks and no hesitation to sell a good stock for a better prospect.
I subscribe to RB, SA, and SuperNova. RB is my favorite, SA close behind, and I like the full dive analysis in the SN.
