Pep Talk – Holding Stocks is the hardest part

Holding is the hardest part because it combines ALL the feelings & potential regrets that can arise from both buying & selling.

Buying is the easy part of buy-and-hold.

Anyone can buy-and-hope.

It’s the hold part that’s hard.

It was easy to hold onto stocks in 2023 & 2024, as Global Equity Markets rose 24% and 19% in back-to-back years.

This year is much harder.

Volatility is up.

Uncertainty rises by the day.

Confidence is shaken.

I don’t know what’s going to happen but I do know that abandoning my investment philosophy is not going to help matters.

The investment strategy I choose to implement has much less bearing on my performance than actually sticking to a long-term plan no matter what happens in the market.

I am always a proponent of the idea that less is more, but even more so during turbulent markets.

The best risk control I have right now is knowing what I own & why I own it.

It’s much more difficult to stick with a complex strategy because it’s harder to understand.

Yes, I can more easily lean into the pain when I know what I am buying, holding & why.

Equity Investing = You don’t get the reward without taking the risk.

How has your fortitude – the ability to ride out the drawdowns – been lately?

Have you made changes to your portfolio over the last weeks?

“It’s not the things you buy and sell that make you money; it’s the things you hold.” – Howard Marks

“You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long, time.” – Charlie Munger

15 Comments

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