YESTERDAY + PETER LYNCH + @CathieDWood = #HODL
When Peter Lynch ran Magellan, annualized return over 13 years was >29%, yet average investor in fund only got 7%.
Could be statistical reasons for this (e.g. fewer investors in HUGE years, many in slow years) BUT MAINLY ...
1/
When Peter Lynch ran Magellan, annualized return over 13 years was >29%, yet average investor in fund only got 7%.
Could be statistical reasons for this (e.g. fewer investors in HUGE years, many in slow years) BUT MAINLY ...
1/
2/
... but mainly it's a matter of undisciplined investor behavior.
Noobs see a fund (or stock) booming, so they buy, often at peaks and ATHs.
Then once it goes down - they sell in panic and head to the shore of safer investments (value stocks, cash etc)
..
... but mainly it's a matter of undisciplined investor behavior.
Noobs see a fund (or stock) booming, so they buy, often at peaks and ATHs.
Then once it goes down - they sell in panic and head to the shore of safer investments (value stocks, cash etc)
..
3/
Conceptually that's "buy high, sell low" which is bad, but there's also another major problem.
Pulling out means missing days like yesterday ( $ARKK +10%, $TSLA +20%).
Single days can be SIGNIFICANT, and after strong declines such days can show BRUTAL upswings
Conceptually that's "buy high, sell low" which is bad, but there's also another major problem.
Pulling out means missing days like yesterday ( $ARKK +10%, $TSLA +20%).
Single days can be SIGNIFICANT, and after strong declines such days can show BRUTAL upswings
4/
Checking S&P500 over 20 years showed that missing only the top 10 days cut 20yr returns by 50%, and missing the top 20 days (over 20 years!) put you in a loss!
fool.com/investing/2019…
Checking S&P500 over 20 years showed that missing only the top 10 days cut 20yr returns by 50%, and missing the top 20 days (over 20 years!) put you in a loss!
fool.com/investing/2019…
5/
Most of us know this, but tweeting this bc YOUSTERDAY SHOULD SERVE AS REMINDER
1. If you don't research & have personal conviction in something, stay TF out of market
2. If you do have conviction, ignore volatility and HODL as long as BUSINESS aspects stay true
(not advice)
Most of us know this, but tweeting this bc YOUSTERDAY SHOULD SERVE AS REMINDER
1. If you don't research & have personal conviction in something, stay TF out of market
2. If you do have conviction, ignore volatility and HODL as long as BUSINESS aspects stay true
(not advice)
6/
A rise in bond yields might change the Nasdaq and lower share prices for a while, but it does NOT change the potential TAM, growth, profitability etc. of Tesla, Crispr etc.
It changes the voting, not the weighing.
A rise in bond yields might change the Nasdaq and lower share prices for a while, but it does NOT change the potential TAM, growth, profitability etc. of Tesla, Crispr etc.
It changes the voting, not the weighing.
7/
Peter Lynch said every two years there's a 10% decline, and every 6 years a 25% decline
If you're aware of that, realize the sky isn't falling, you own COMPANIES not stonks, HODL good ones & see declines as opportunities, you will profit regardless!
Peter Lynch said every two years there's a 10% decline, and every 6 years a 25% decline
If you're aware of that, realize the sky isn't falling, you own COMPANIES not stonks, HODL good ones & see declines as opportunities, you will profit regardless!
PS
8/
Lynch spends 0 time thinking about Washington etc, never tries to guess interest rates etc.
In other words - for investors in $TSLA , $FUV, $NVNXF and other EV stocks, the following graph by @jpr007 is much more important than interest rates
8/
Lynch spends 0 time thinking about Washington etc, never tries to guess interest rates etc.
In other words - for investors in $TSLA , $FUV, $NVNXF and other EV stocks, the following graph by @jpr007 is much more important than interest rates
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