Reinhardt Gert Coetzee
Edited
๐—œ๐— ๐—ฃ๐—ข๐—ฅ๐—ง๐—”๐—ก๐—ง ๐—–๐—ข๐—ฃ๐—œ๐—˜๐—ฅ ๐—จ๐—ฃ๐——๐—”๐—ง๐—˜ - ๐—”๐—ฑ๐—ฑ๐—ถ๐—ป๐—ด ๐—ณ๐˜‚๐—ป๐—ฑ๐˜€ ๐˜๐—ผ ๐˜๐—ต๐—ฒ ๐—ฝ๐—ผ๐—ฟ๐˜๐—ณ๐—ผ๐—น๐—ถ๐—ผ Hi everyone, I will be adding new cash to the portfolio on the 1st of next month (June). With the $SPX500 very close and around being in official bear market territory and some stocks in the portfolio down by over 70% this year, I believe now is another good opportunity to start adding some additional cash to the portfolio. Looking at market data going back to 1946, if we play the averages we are either at the later stages of a correction (-10% to -19.9% drop in the S&P) which on avg lasts around 133 days - we just passed that mark this last week. Or we are about 1/3 into the avg length bear market (+20% drop in the S&P) which lasts on avg 338 days - the Nasdaq already entered this territory a few weeks ago. ๐˜š๐˜ฐ๐˜ฎ๐˜ฆ ๐˜ฎ๐˜ฐ๐˜ณ๐˜ฆ ๐˜ช๐˜ฏ๐˜ต๐˜ฆ๐˜ณ๐˜ฆ๐˜ด๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜ง๐˜ข๐˜ค๐˜ต๐˜ด: bit.ly/3GdjTxi ๐—ช๐—ต๐˜† ๐—ป๐—ผ๐˜„? โ€œYou make most of your money in a bear market, you just donโ€™t realize it at the time.โ€ - Shelby Cullom Davis Some stock prices of excellent growth companies like $NVDA (NVIDIA Corporation) and $SHOP (Shopify Inc.) are down 40% - 70% respectively. These are fantastic well-run businesses, with huge existing and growing demand for their products, have fortress-like balance sheets that can withstand any downturn and with excellent growth potential over the coming years which I believe are presenting a good buying opportunity for long-term investing. I believe in being a net buyer of stocks over time and adding to positions at different price points and continuously adding to your investments, during up and down periods in the market, I believe this is a recipe for winning. So I will be adding some new funds to the portfolio. ๐€๐ซ๐จ๐ฎ๐ง๐ ๐Ÿ“%. You will get a system notification once it's added (in a few days once the funds reflect in my account) with a suggestion of how much to add if you want to match it for the copy. The added cash will be used to buy some more of my highest conviction stocks that have dropped recently and also to keep a certain amount of cash available. Itโ€™s a fairly small amount, but depending on how the market moves in the coming months - coming out of a correction or entering a longer bear market - I will potentially look at adding a few more rounds of 5% additions. ๐—›๐—ผ๐˜„ ๐—ฑ๐—ผ๐—ฒ๐˜€ ๐˜๐—ต๐—ถ๐˜€ ๐—ฎ๐—ณ๐—ณ๐—ฒ๐—ฐ๐˜ ๐˜†๐—ผ๐˜‚? This is completely optional. ๐—ข๐—ฝ๐˜๐—ถ๐—ผ๐—ป ๐Ÿญ Join me - if you have spare savings that you can invest and leave in the market for the next 5 years and don't need in an emergency, it's a good time to invest if you're investing for the long term. You will get a system notification once it's added (once the funds reflect in my account) with a suggestion of how much to add if you want to match it for the copy. ๐——๐—ผ ๐—ป๐—ผ๐˜ ๐˜€๐—ฒ๐—น๐—ฒ๐—ฐ๐˜ ๐˜๐—ต๐—ฒ ๐—ฐ๐—ผ๐—ฝ๐˜† ๐—ผ๐—ฝ๐—ฒ๐—ป ๐˜๐—ฟ๐—ฎ๐—ฑ๐—ฒ๐˜€ ๐—ผ๐—ฝ๐˜๐—ถ๐—ผ๐—ป. This is the one time where you should rather not use the โ€˜copy open tradesโ€™ option, as you want the full amount to be added to cash inside the copy and not be used to add to existing trades, to match my cash %. ๐—ข๐—ฝ๐˜๐—ถ๐—ผ๐—ป ๐Ÿฎ Do nothing - you can ignore this. New trades I open using the additional funds may not get copied on your side and you may not get the benefits of dollar-cost averaging, you may also be slightly out of sync with my portfolio. I do try and rebalance some positions from time to time to keep them in sync. I will post more on this and a have look at drawdowns and how to put them in perspective using one of the (maybe the most) successful investment vehicles and investors of all time - $BRK.B (Berkshire Hathaway Inc) and Warren Buffet - how has his company/fund managed during situations like these. The data might surprise you.
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