I try to refrain from short posts, but I think it’s worth underlining a crucial lesson from Jason’s summary:
Because I was confident in both when to sell Lightspeed and where to put the remaining money to work, I ended up by the end of the day with more in my overall portfolio, despite begining the day with a 20-25% loss in what was a 10% position in Lightspeed.
Think about that – a tenth of Jason’s portfolio was down ~25%. Upstart was also down that day. Yet by acting quickly, he was able to finish the day in green. That is incredible!
This is one of the key tenants of successful investors that hold a concentrated portfolio. If Jason had not set his expectations on Lightspeed’s earnings, or if he had not acted quickly once the information was released, or if he had not known where to invest extra cash – there is no way his portfolio would have finished that day net positive. These are multi-percentage point differences in a portfolio in a single day - which obviously compound overtime. It is not be coincidence that the leaders of the board often highlight these sort of lessons!
-RMTZP
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