The story of Rufus the amateur investor and how he was so wrong by being so right. You need conviction to make money. Volatility is a constant in the financial markets.
Awesome post! That really resonates, you absolutely have to do the research yourself in order to get the conviction to hold through volatility to achieve significant returns.
That said, nothing goes up forever and it's difficult to know when to sell, especially if a position is a multi-bagger success. Even more so if it is a group of stocks all within the same sub-sector (e.g. oil stocks at the moment). How to detect a regime change and differentiate it from normal volatility? That is the question I am currently thinking about.
Terrific post, Philo! It's hard to believe but I have seen even seasoned investors (ummm...perhaps even me) make the same mistake as Rufus at times. FOMO is real and it can be a struggle, even for experience & normally disciplined individuals. You're bang on with so many points; the more you perform DD, the stronger your conviction - the less chance for loss. Thanks!
Awesome post! That really resonates, you absolutely have to do the research yourself in order to get the conviction to hold through volatility to achieve significant returns.
That said, nothing goes up forever and it's difficult to know when to sell, especially if a position is a multi-bagger success. Even more so if it is a group of stocks all within the same sub-sector (e.g. oil stocks at the moment). How to detect a regime change and differentiate it from normal volatility? That is the question I am currently thinking about.
excellent post :)
Terrific post, Philo! It's hard to believe but I have seen even seasoned investors (ummm...perhaps even me) make the same mistake as Rufus at times. FOMO is real and it can be a struggle, even for experience & normally disciplined individuals. You're bang on with so many points; the more you perform DD, the stronger your conviction - the less chance for loss. Thanks!