Interesting – but buying and holding isn't a strategy in and of itself, unless we create thesis invalidation conditions, right?
I, for example, think that once an investor creates these conditions, he shouldn't add or remove any more conditions so that he's not emotional – but I have an issue with Duolingo right now. Any advice?
I don’t necessarily agree with your premise. Some investors are known for buying stocks and holding them for their entire lives. I would even argue the opposite: the proportion of investors who became very wealthy through investing includes more people who held certain stocks for their entire lives than in the general investor population. This is true both for founder-operators and for pure investors, such as Philip Fisher, who held Motorola for nearly 50 years.
That said, I do agree with you that changing one’s plan along the way goes against the very notion of having a plan and its purpose of limiting the impact of cognitive biases. As for Duolingo, I don’t know the company at all, so I would struggle to provide any meaningful input.
Loves this practical piece. Great reflection that most of our daily news seem to be noise. As long as we use years as investment horizon and learn to stand through the volatility, the chance of positive return is almost guaranteed, which is back up by data but not subjective thought
Interesting – but buying and holding isn't a strategy in and of itself, unless we create thesis invalidation conditions, right?
I, for example, think that once an investor creates these conditions, he shouldn't add or remove any more conditions so that he's not emotional – but I have an issue with Duolingo right now. Any advice?
I don’t necessarily agree with your premise. Some investors are known for buying stocks and holding them for their entire lives. I would even argue the opposite: the proportion of investors who became very wealthy through investing includes more people who held certain stocks for their entire lives than in the general investor population. This is true both for founder-operators and for pure investors, such as Philip Fisher, who held Motorola for nearly 50 years.
That said, I do agree with you that changing one’s plan along the way goes against the very notion of having a plan and its purpose of limiting the impact of cognitive biases. As for Duolingo, I don’t know the company at all, so I would struggle to provide any meaningful input.
Thanks for your reply.
Incredible piece
Thank you, glad you enjoyed it!
Loves this practical piece. Great reflection that most of our daily news seem to be noise. As long as we use years as investment horizon and learn to stand through the volatility, the chance of positive return is almost guaranteed, which is back up by data but not subjective thought
That’s an excellent summary of how to succeed in investing, and why it is simple, but not easy.
Thanks for your feedback!