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Subject:  Re: Dead in the Water Date:  11/27/2018  10:12 PM
Author:  CMF_Fuskie Number:  279227 of 281001

Personally, I think that's the wrong choice, but you gotta do what you gotta do. This is a great opportunity to add cash into your positions, while they are down. I am jealous of those who have 401k accounts automatically investing over the last couple months, with those automatic payroll contributions buying more shares of funds on discount, because when the market picks up, and it will almost certainly, those funds will grow even faster.

Stock prices will go up and they'll go down and sometimes they feel stalled. The benefit of long term buy-and-hold investing is that for the better companies (the kind The Motley Fool seeks out), they'll sustain consistent growth more than they'll experience drops in price. Inherent in that theory is an understanding that the price can and will down. Sometimes by big amounts, sometimes small, and sometimes over a short period and sometimes over a longer period.

David Gardner has said that 60% of a portfolio's positions over time will show gains while 40% will experience losses. After he said that, I checked my portfolio (which I rarely do) and sure enough, 59% of my positions were in the black. How did he know? That's why I subscribe to Foolish services!

The point is you should focus on the quality of your companies, not the movements of the market price. If you are confident that the company is operating in a positive direction, then over time the market growth should justify your faith. I call it investing in companies, not markets. I also maintain that investing is what happens between quarterly earnings reports and strive to not make investment decisions immediately before or after earnings reports.

Possibly the most important message I could try to convey is to remove emotion from your investment equation. Decisions to buy or sell a position should be proactive, not reactive. This means your decisions are based on a researched watch list, specific news and opportunity, not in response to day-to-day movements of the market or explosive but not necessarily meaningful events affecting a company's future promise.

Who is not concerned with short term volatility or lack thereof as long as the the original investment thesis for the company remains intact...

Ticker Guide for The Walt Disney Company (DIS), SodaStream (SODA), Live Nation (LYV), CME Group (CME), Mongo DB (MDB)
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