Now this is something I struggle with, right. Building a warchest to take advantage of opportunities. In such uncertain market environments, it makes alot of sense to have a sizeable warchest to buy on market dips. However what I struggle with is whenever I think I have a warchest, I end up vesting into another position. Guess it takes as much discipline to invest as not to invest.
In any case, I'll most probably be looking to enhance my warchest over the next few months as a way to build up capital to invest on market dips.
In the meanwhile I'll stay on the sidelines and wait out the current market volatility. One thing I really did realise versus my previous investment experiences is that when you have a solid quality portfolio, market volatility does not hit you as badly. Yes, your portfolio does take a hit but it sure is much more bearable compared to what I used to own when I was years younger (penny and speculative positions). I guess experience really does help build knowledge over time.
So in summary, just reiterating two simple yet important lessons I have gathered as I age and become more mellowed and wise in all things investing.
One, always have a sizeable warchest to capitalise on market weaknesses. Two, always invest in quality and solid businesses that you understand and are comfortable with. Both of these help to capitalise and ride out market volatility, values which are extremely important for any investor. It really is as simple as that.
Signing off
Transitioning Stock Investor
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