01-02-2016, 04:48 PM
Yep, I appreciate the post cannew, and the thread. It's funny because people make fun of those who say "it's not a loss if you don't sell it", but that is EXACTLY what it is.
Warren Buffett said that you shouldn't buy stocks if you are not willing to hold them for ten years (over a full market cycle).
Charlie Munger was quoted saying don't hold a stock you are not comfortable seeing go down 50% (i.e. there is a likelihood that your stock might go down 50%).
So these are 100% realities, there are always sectors getting batted down and sectors popping up...This past year clearly some retail benefited from low gas prices and the strong dollar, while most energy was pummeled. But the strength of high quality companies did not change, this is all temporary. Imagine when energy comes back up, those with significant energy holdings will see a huge pop in their portfolio value for the year while some other portfolios won't do as well.
So I definitely have to stay the course, buckle in, hold on tight, and keep trying to intelligently reinvest my dividends as prudently as possible, with a focus on high quality diversification, income all the way, capital gains are incidental and typically rise in the long term with good businesses who manage to increase their earnings power over the long run!
Happy new year all
Warren Buffett said that you shouldn't buy stocks if you are not willing to hold them for ten years (over a full market cycle).
Charlie Munger was quoted saying don't hold a stock you are not comfortable seeing go down 50% (i.e. there is a likelihood that your stock might go down 50%).
So these are 100% realities, there are always sectors getting batted down and sectors popping up...This past year clearly some retail benefited from low gas prices and the strong dollar, while most energy was pummeled. But the strength of high quality companies did not change, this is all temporary. Imagine when energy comes back up, those with significant energy holdings will see a huge pop in their portfolio value for the year while some other portfolios won't do as well.
So I definitely have to stay the course, buckle in, hold on tight, and keep trying to intelligently reinvest my dividends as prudently as possible, with a focus on high quality diversification, income all the way, capital gains are incidental and typically rise in the long term with good businesses who manage to increase their earnings power over the long run!
Happy new year all