JavierB75
@JavierB75 shared a post via Wesley Nolte
United Kingdom
5y
Wesley Nolte
Wesley Nolte
United Kingdom
5y
😓 ᴛʜᴇ ʜᴀʀᴅᴇsᴛ ᴘᴀʀᴛ ᴏғ ɪɴᴠᴇsᴛɪɴɢ What if I told you about an investment proposal where the company was changing the face of an industry? But if you wanted to invest you couldn't touch your investment for the next 19 years. Would you be a little hesitant? What if I added the small detail that you would have to endure drawdowns of over 70% four times in this period. And drawdowns of over 15% many, many times too. In fact, you would have one period where your paper loss would be over 80%. How about then? Would you invest? I suspect that no matter the fundamentals, management team, etc. of that business that most would steer clear. Now, what if I said that a $10k investment in this company would become $4.5m in that period? That changes things a little right? That's enough to retire on (if invested well). $NFLX (Netflix, Inc.) is that company. And there are many similar examples. Yet despite all these examples, we let the psychology of the market get to us. This is not a game to be played over the days, weeks, or even months. This is a game of years and decades, where drawdowns could be large and relatively frequent. This is why it's often best to tune out the media, the gurus, and sometimes the market itself on focus on what matters most: the business. This is easier said than done, and this is why I encourage investors to keep notes on their investments which can be referred to when the going gets tough. What companies out there right now are experiencing monumental drawdowns that could see multi-bagger returns over the coming years? That's a good question, but one for another time :) Best of luck out there  🖖🏼 Translate
Not investment advice. The author may have financial interests in the mentioned instruments.
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