Investor Quote of the Week

Quote Meaning

This especially rings true after the US election, which had many investors (and traders) rethinking their investment strategy and figuring out if they were well positioned given the new political environment.

Despite the general consensus that a Donald Trump victory would benefit the stock market, many stocks are at all-time highs and some are at all-time lows.

Regardless of who won the presidency, the only thing that truly matters is being honest with yourself.

Elections come and go, but what you can do is to diversify well and buy value, not hype, regardless of how well the economy is doing.

The best advice I can give is to sit down, look at your current investment portfolio, and deeply dive into your positions if you need to rebalance anything.

Nugget of Wisdom

You Can Be Wrong!

Avoid investing heavily in any single stock, bond, or fund.

You can be wrong or right about the expectations of the asset's future.

I’ve made countless mistakes over the years, and the best way to avoid big losses is to diversify across different companies and sectors.

In my personal opinion, 7–12 individual assets provide me with enough diversification for me to “beat” the general market, but to each their own.

If you’re new to investing, you’re much better off buying the general index and holding for a long period of time.

If you have ideas about specific companies and want to take a position, then risk only a small portion of your portfolio (5–10%) until you become more confident in your investing capabilities.

The lesson is:

Don’t bet the farm.

I bought BABA at $260/share and it crashed soon after.

Diversify because sometimes you can get it wrong!

Mistakes to Avoid

Stay away from “complicated” companies.

If you don’t understand a specific business, stay away from it.

You don't need to jump on the next "big thing," like AI or biotech, if you don't understand it.

For example, I don't understand "biotech" or "industrial" companies, so I avoid them.

I don’t need to invest in something I don’t understand.

Pick businesses that you understand. If you happen to use their products, then you, as a consumer, will understand their business model a lot more.

There are many ways to make money in stocks, but chasing things you don’t understand will lead to big failure.

Stick to what you know.

Stock of the Week

Blackrock Inc (Ticker: BLK)

Company Description

Blackrock, Inc. engages in the provision of investment, advisory and risk management solutions. Its products include single-asset and multi-asset portfolios. The company was founded by Laurence Douglas Fink in 1988 and is headquartered in New York, NY.

DIY Stock Investing Mastery Call

If you're serious and want to learn how to manage your own investment portfolios, this call covers the essential strategies and practices of investing, based on my 10+ years of real-world experience.

Here’s what we’ll discuss:

1. Portfolio Management: How I set up and balance my portfolio to reach my personal goals, adjusting to market changes.

2. Risk Management: Ways I protect my investments and optimize returns.

3. Diversification: How I spread investments across different sectors, countries, and types of assets.

4. Investment Discipline: How I make smart decisions, analyze effectively, and keep a long-term focus.

This session is for those ready to control their financial future with a DIY approach.

If you’d like to book a paid session with me, click here.

Talk soon,

Sam

Note: This is not financial advice—just insights from my 10+ years of investing.