Hello everyone, after struggling with google spreadsheet and the loading time, I decided to just take a print screen of my portfolio and post it on the Portfolio submeny.
[PS: I neglect $ fluctuations since I will dollar-cost-average for many many years]
I´ve seen that a lot of people want to check out my portfolio, understandably, so I posted some pictures and will update maybe every quarter. However, I just want to say that Stockles is a blog about being long-term, focused and saving money rather than spending it on things you don´t really need.
We have been very lucky for a long time
People who entered the stock market after 2008 have been very lucky and I suspect that there is an irrational believe that stocks never go down. Far to often I see people saying that they buy a crappy stock and just wait until it bounces up again. As if stocks are just a bouncy ball that always will go up after going down. What people seem to fail to understand is that the market as a whole always goes up in the end, but isolated stocks don´t need to. Especially if you buy crap.
What you need to understand
My point is that we have been spoiled and few of us have experience with a solid bear market. Neither have I. However, for us dividend investors we can take a few actions to make sure we at least know our holdings. This is what I recommend:
- Start reading the annual reports
- Stop looking at the price of the stock
- Stop thinking that looking at the price of a stock is the same as following the company. They are not correlated in the short-term
- Start focusing on figure out the dividend safety of each holding, SimplySafeDividends gives you this option.
- I think beginners and novice investors should focus on having 2-6% of each holding in a stock. This way, a huge price drop of 35% will not affect your portfolio and your mental state as much anymore. Soon, you will start to feel a feeling that I treasure “Blaaah. Whatever”. This is how I respond when I see a stock going down. Out of curiosity I want to know why, but my mental state is normally not bothered.
- Read proper news and not the crap click-hunters want you to read. No reason to always find the new buy recommendations or the new sell recommendations. You have your portfolio and that should be enough for most of us.
Well, that was a strange list, I know, but I think it gives you a sence of how I think. For me, the stock market is a hobby, but I don´t think it will make me rich soon. In the long-term, yes, if I make the right choices. The way I see it, becoming a good investor is about figuring out who you are, and that is why I spend a lot of time on this hobby. It´s not primary the money, but it´s more the feeling of personal development.
Illustration is needed
Being a buy and hold investor means being involved in the ups and downs. Do you know anything else that involves ups and downs? Life! relationships! Goals! Think about how many marriages and break ups there would be if everyone trew in the towel immediately when they hit the wall. Instead, they talk (should at least) about the problem and in time, they figure out if they should stay together or break up. But most couples go to bet angry, wake up the next day and figure out what´s wrong. Do the same thing with stocks and I promise you that you will get rich.