My Daily Thoughts


Never Time the Market

My stocks sometimes get overpriced, but in the long run this kind of company, if you can find it, will outperform the market and the economy. The worst thing you can do is try to catch the swings, sell out too soon and be afraid to buy back in.
Philip Fisher

The stock market has performed extremely well this year.

The gains I have in the market now make me fear that I might lose them. It makes me question whether the market has reached the top, or whether it is poised to crash.

When I think this way I have to remind myself that nobody has been able to time the market effectively. There are too many factors and variables to make this call.

The focus has to be on the individual stocks and their stories. If the story still makes sense then keep the stock, if it doesn’t then sell. Yes, the stock will fluctuate with the market, but it will always come back to what the value of the stock is. If a stock ever gets too over-valued, the story will tell you that and you sell. If it gets undervalued again the story will tell you and you buy.

Control the things you can control, and ignore the rest.

Live the Adventure


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