Thread by @iancassel

A snippet from my Q3 @IntelligentCM Letter

Opportunity exists in the public markets because stock prices don’t accurately reflect business fundamentals and prospects. My job is to identify, evaluate and invest in unique and misunderstood situations… and wait.

Waiting doesn’t sound sexy. People like to hear that you know how to time the market. What am I paying you for, right? But history has shown this to be very difficult, if not impossible.

In your area of expertise, how accurately have you been on timing? You may have been right in the end, but not in the beginning. Instead of fooling oneself into believing you can time something, it’s better to align yourself with how the world actually works.

Stocks rarely perform in the timeframes we predict, and that is why the market typically only works for investors that have a long-term portfolio focus.

Great investors are savants at the waiting game. They develop the skillset of active patience. Active patience is diligently verifying your investment thesis — and doing nothing — until there is something to do.

Performance is rarely smooth, up and to the right. Sometimes, you have to hold onto a position for a few years before it goes up 300% in 6 months.

Over time, a few investments should become greater percentages of the portfolio. Winners continue to win and losers fall out and are replaced. The portfolio should become a little top heavy and perform with more volatility as a few investments dictate the portfolio’s direction.

The more concentrated you are, the louder your emotions become. This is what winning feels like. It’s a little uncomfortable. We all want big returns and you have to have the stomach for it.