Great comments. Think long term act short term. I have been a safer investor primarily large caps after I retired. But in last 2 yrs I have a ton of micro/smallcaps. I don’t think I have held any a yr, but a couple are close. KRKNF, ITMSF as I still own, both up well over 100%.
But there is also compounding to megabaggers not being in the same stock. Say you get a triple cash out, then get another triple with those funds. Or 100k>300k>900k.
Quick story of long-term holding, as I didn’t really become an investor till 2017. But I joined FOSL in 1992, went public in 1993 and I invested all I could or $7,500 (lol). I left in 2013, twenty yrs after going public. I sold everything. That $7500 was $646,000. I had stock options and bought more shares along the way. I left at peak, as stock is now below $2 now.
But obviously holding long term brought me 7 figures and set my retirement in motion and I began to truly analyze stocks and learn, a never ending journey.
Thanks for sharing, Kevin. Congrats on the FOSL win.
I do agree with you about the compounding power of turning over short-term gains of 50% to 100%. That’s what I did for the first 20 years of my career. I even think many studies confirm this. Most Stocks should be rented and not “owned.” It also makes investing more fun.
Even though I do some long-term investing in very high conviction names, the crux of my strategy still entails trying to hold stocks only in the meat of a growth cycle.
A problem that can occur with a long-term mindset is getting lazy, making excuses for losers. And then there’s the situation that occurs when you might even pick the right sock, but where time reduces the annual return you made during the holding period.
An interesting observation I made earlier in my career was that my huge wins of a particular year usually underperformed the next year. Eventually, the company has to go up against superior earnings-per-share growth that may have propelled the stock in the previous months. At some point, growth usually normalizes or valuation gets so high that it doesn’t make sense to buy the stock, even if growth remains solid.
Great comments. Think long term act short term. I have been a safer investor primarily large caps after I retired. But in last 2 yrs I have a ton of micro/smallcaps. I don’t think I have held any a yr, but a couple are close. KRKNF, ITMSF as I still own, both up well over 100%.
But there is also compounding to megabaggers not being in the same stock. Say you get a triple cash out, then get another triple with those funds. Or 100k>300k>900k.
Quick story of long-term holding, as I didn’t really become an investor till 2017. But I joined FOSL in 1992, went public in 1993 and I invested all I could or $7,500 (lol). I left in 2013, twenty yrs after going public. I sold everything. That $7500 was $646,000. I had stock options and bought more shares along the way. I left at peak, as stock is now below $2 now.
But obviously holding long term brought me 7 figures and set my retirement in motion and I began to truly analyze stocks and learn, a never ending journey.
Thanks for sharing, Kevin. Congrats on the FOSL win.
I do agree with you about the compounding power of turning over short-term gains of 50% to 100%. That’s what I did for the first 20 years of my career. I even think many studies confirm this. Most Stocks should be rented and not “owned.” It also makes investing more fun.
Even though I do some long-term investing in very high conviction names, the crux of my strategy still entails trying to hold stocks only in the meat of a growth cycle.
A problem that can occur with a long-term mindset is getting lazy, making excuses for losers. And then there’s the situation that occurs when you might even pick the right sock, but where time reduces the annual return you made during the holding period.
An interesting observation I made earlier in my career was that my huge wins of a particular year usually underperformed the next year. Eventually, the company has to go up against superior earnings-per-share growth that may have propelled the stock in the previous months. At some point, growth usually normalizes or valuation gets so high that it doesn’t make sense to buy the stock, even if growth remains solid.
It is a credit to your mental flexibility that you were able to evolve your thinking!
It’s also the source of all my problems 😂
Preaching to the choir
Great one Maj. Nice to read how your style evolved.
Thanks Mauricio .. I think your process is also evolving:)
Appreciate it Maj! Yes it is, slowly. Learning a lot from you.
Love playing short and long game even if my putting and chipping suck .
I’m 💯 with you. Pete Rose made it into the record books by hitting singles.
Mind games!! Appreciate you Maj
Thank you, Craig. You have come a long way in your 18 month investing journey. Keep it up!