“When things are good, we forget that things are going to be bad again, and when things are bad, we forget that things are going to be good again”. Tilman Fertitta
In times like this, the words of Billionaire Tilman Fertitta echoes in me, every passing moment. Everybody goes through spells of a good time and bad time, irrespective of backgrounds and aspects of life.
Whether you are a stock market investor or a real estate investor, heck, even a non-investor, you’re going to have really good times and really bad times.
As a growth stock investor, 2020 (after the market crash) and January 2021 was one of those really good times. The going was great; 5G, EV and AI stocks were flying, and most importantly, investors were crazily optimistic.
However, the performance of recent weeks, dare I say months, haven’t been great, far from it, it has been one that has left a sour taste in the mouths of many investors, be them growth or value investors.
The shocking underperformance of darling names like TSLA, PTON, and the much-anticipated COIN IPO has been a revelation in itself, and you can throw Bitcoin into that fold.
Investors are bleeding, bleeding a lot of cash, and the feds are not making matters any better, they’re actually making it worst. The market is seemingly not buying their ‘Hawkish Turn’ prediction.
It’s all CHAOS, my fellows investors.
So should we all give up on investing?
Should we come to the conclusion that stock investing is died?
Perhaps we should simply write off 2021 from our investing calendar, should we?
I say NO! NO!! and NO!!!
“In the midst of chaos, there is also opportunity” Sun Tzu
This year could be a long-term game-changer for many of us if only we can look beyond the noise, and approach this market knowing that things will be good again.
Investors are selling off promising growth stocks as though their future is forever doomed. I can understand if institutional investors, especially hedge funds, are massively engaging in the sell-off; remember, they’ve to report a good quarter.
A bad year could affect their ability to attract new money and even keep the old money. Moreover, they get paid in accordance with their performance, all the more reason why they cannot, literally, afford a bad year.
That’s Hedge Funds: Typical Hedge Funds.
However, I struggle to understand why a retail ‘investor’ would also engage in such short-term practice. Perhaps that explains why I don’t buy into get-rich-quick schemes.
Fortunate for me, I was trained early on to look at the bigger picture, to look beyond the now, beyond what’s in front of us, and behold what’s ahead of us.
Personally, I approach this market like a farmer who plants in season, knowing that not all markets are structured for harvesting.
One of the greatest, if not the greatest, investor of all-time Warren Buffett once said “Do not take yearly results too seriously. Instead, focus on four or five-year averages” and “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes”.
Buy great stocks at discounted (cheap) prices and hold for the long-term; a simple strategy that is difficult to follow through but has historically paid up over and over again.
“Widespread fear is your friend as an investor because it serves up bargain purchases” Warren Buffett.
Henry John is a Technology Stock Analyst, with focus on companies developing cutting-edge techs.
Keeping track of cutting-edge techs, companies and stocks is what I do almost everyday. And I love it. Whether it’s artificial intelligence, 5g, or autonomous vehicles; I’m all in.
I’m a self-made millionaire who made most of his money investing in technology companies while working in finance.
Yes! I owe it all to tech and finance.