04-12-2021, 06:40 AM
" The only real lesson I learned is valuation will matter eventually. I will buy some high PEs in moderation. I will never go all in and ride the pain of a poor entry point decision for decades."
So true.
Had you purchased a little earlier in the 90s at a little better valuation, you would have been able to hold those trades in profit the entire ride-up and down to the finish line.
Quality stocks bought at reasonable/low valuations make the holding period much easier. Multiple losers can be expected over a lifetime of investing. 2 home runs washes away any temporary sting along the way.
Of course this is all benefitted by what I have learned along the way. I was self taught as my Dad was into real estate and nobody could provide any stock investing guidance.
I DID have those home runs in the 1980s but did not know how to hold onto them (impatient). My small 5K investment in KO and MCD would have become around 5M today (with 110K+ annual dividend) had I left them alone.
Summation: buy good companies at good valuations and let time be the wind at your back.
It is the best that anybody can do long term.
So true.
Had you purchased a little earlier in the 90s at a little better valuation, you would have been able to hold those trades in profit the entire ride-up and down to the finish line.
Quality stocks bought at reasonable/low valuations make the holding period much easier. Multiple losers can be expected over a lifetime of investing. 2 home runs washes away any temporary sting along the way.
Of course this is all benefitted by what I have learned along the way. I was self taught as my Dad was into real estate and nobody could provide any stock investing guidance.
I DID have those home runs in the 1980s but did not know how to hold onto them (impatient). My small 5K investment in KO and MCD would have become around 5M today (with 110K+ annual dividend) had I left them alone.
Summation: buy good companies at good valuations and let time be the wind at your back.
It is the best that anybody can do long term.