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Nothing Like Experience

It’s really easy to read and understand the theory behind the market and various phenomena with regards to equities. But you know what’s really difficult? Actually investing. I’m sure this is well known, but there is a big disconnect between your own capital and reading about others. I wrote a blog post in 2018 about three equities: Amazon, Snapchat, and Berkshire. Snapchat tumbled but recovered. Amazon, went berserk and crushed everyone. And well, I still own Berkshire. The point is capital should stick in one place. Continuing to change asset allocation is dumb and difficult not to do. However, I’ve left most of my capital in one spot for my own detriment. See I no longer think past methodologies of finding cheap companies are valid. Mega-cap companies keep becoming more richly valued even as their profits stay the same. Asset Inflation anyone??? But some of these really cheap (current working assets: liabilities) micro-cap companies continue to underperform. Maybe the market in the long run really is a weighing machine, but when do I know if I really am a hundred pounds and not a thousand?? Wow waiting is difficult, very difficult. People might underestimate Buffet but they are wrong. I mean seriously, it is amazing the type of conviction you must maintain to hold a position for forever. Maybe I just lack the same belief in my accuracy that Buffett had. Who knows??

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