I don’t know who needs to hear this, but…
I’ve returned from a very European vacation. My family traveled for three weeks. My wife was on vacation from her corporate job for four weeks - this is our longest vacation since we were married. As unusual as this experience was for us, this is the norm in Sweden (and Europe). But that is a story for another time…
When I was fully rested from all my travels, I had a bit of a binge on Twitter and other financial sites. I immediately felt small. Sure, my portfolio of mostly small companies had done ok. But here were people posting screen shots of multi-baggers over the last year. YTD performance posts that put my portfolio to shame! I felt demoralized. I was a relative disaster.
It took me several days, and a couple of conversations with other investors before I recovered my composure. I realized that this is something we all struggle with. So here we go:
I don’t know who needs to hear this, but:
I did not buy NVDIA 5 years ago and earn 3000% (or one year ago, or at all)
I am not up triple digit percentages YTD
I did not successfully “pivot” my portfolio to capture the AI craze
I did not successfully hedge my portfolio prior to the August 5 “yen-carry trade” sell off
I did not go “all-in” on August 7 and ride the recovery wave from the “crash”
I sold some of my companies too soon
I bought some of my companies too late
Despite all of this, I am fine. My portfolio is fine. I’m not sure if things have changed, or it is the market cycle, or what; but the level of breathless narrative seems extreme.
I need to keep in mind that I am playing my own game. I’m running my own race. Learning from others is great, but constantly comparing myself to them is not going to get me anywhere.
I also try to keep in mind that people will post only their positive experiences. All of the clips of multi-bagger returns should be offset with all of the losing positions people hold that were never posted. It is human nature to want to share your successes. I understand the desire to trumpet you winners - if you don’t who else will! Investing can be a lonely game and we should all strive for a little recognition when we deserve it. Let’s try to keep it balanced.
Now its time for a walk…
