My Google Finance screenshot from 10 yrs ago (Aug 2011).
Look where the indices and stocks shown were trading back then vs now. (Compare Mktcaps, not prices as many of them had splits over the yrs).
$AAPL $ADBE $AMZN $CMG $GOOG $ISRG $LULU $MA $MELI $MSFT $NFLX $NVDA $V
Look where the indices and stocks shown were trading back then vs now. (Compare Mktcaps, not prices as many of them had splits over the yrs).
$AAPL $ADBE $AMZN $CMG $GOOG $ISRG $LULU $MA $MELI $MSFT $NFLX $NVDA $V
We went thru US and Eurozone recession fears, three US Presidential elections, Brexit, Terrorism events, many Taper tantrums, a deadly Pandemic and many more major events/headlines and here we are.
I take screenshots like these during Bear Markets and extreme volatility periods (took many during GFC, Fall 2011, Feb 2016, 4Q-2018, March 2020...) as a reminder that whatever is the news of the day will blow over and the real issues (GFC/COVID...) will get resolved with time.
It's not the Market Volatility that we should fear, it's our reactions to that Volatility that we need to be aware of and have better responses (if we call ourselves long-term investors).
Few lessons for myself (from the above listed stocks)
1⃣ $ISRG $LULU $V are the only ones from this list I owned back in 2011 & continue to hold until today.
Didn't add enough at regular intervals (despite knowing of it's importance) & kept bloating the Portfolio with new pos.
1⃣ $ISRG $LULU $V are the only ones from this list I owned back in 2011 & continue to hold until today.
Didn't add enough at regular intervals (despite knowing of it's importance) & kept bloating the Portfolio with new pos.
2⃣ $AAPL $AMZN $CMG $GOOG $MA $MELI : I watched & liked all of them, all the way from GFC (Fall 2008) until 2014-16 period when I finally bought them.
What took me so long? Obsession with Valuation over Quality/Durability/Growth cost me many valuable years in these great Co.'s.
What took me so long? Obsession with Valuation over Quality/Durability/Growth cost me many valuable years in these great Co.'s.
3⃣ $MSFT $NFLX $NVDA : Bought them all at great times ($40, $84, $8 respectively) with the intention to hold for the long-term, but sold them in few years getting impatient or fearing Market levels & Macro stuff.
Selling good long-term positions for non thesis busting reasons or valid Portfolio/Opportunity reasons, is rarely a good thing.
4⃣ $ADBE $BKNG : Never bought them despite watching & admiring those well run Co's for 13 yrs.
What's the point of a Watchlist if you're going to keep them in there for 13 years (while liking their results/execution & acknowledging future prospects too) & never buy? Don't do it.
What's the point of a Watchlist if you're going to keep them in there for 13 years (while liking their results/execution & acknowledging future prospects too) & never buy? Don't do it.
✔️Few General Lessons
-Volatility is the price we have to pay for good long-term results in the Markets.
-Just acknowledge that it'll show up unexpected. Don't panic or be surprised every time it shows up.
-Volatility is the price we have to pay for good long-term results in the Markets.
-Just acknowledge that it'll show up unexpected. Don't panic or be surprised every time it shows up.
-Make the Portfolio diversified and resilient enough to absorb small shocks.
-If we own Quality Co.'s for the long-term and have conviction in them, the price drops in the holdings (purely for Macro reasons) shouldn't scare us out of our positions.
-If we own Quality Co.'s for the long-term and have conviction in them, the price drops in the holdings (purely for Macro reasons) shouldn't scare us out of our positions.
-Learn how to deal with Volatility and even take advantage of it slowly if you can.
Good Luck.
/END
Good Luck.
/END
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