Blue Screen Media ApS @CPHequities: "𝗪𝗵𝗮𝘁 𝗦𝗲𝗽𝗮𝗿𝗮𝘁𝗲𝘀 𝘁𝗵𝗲 𝗕𝗲𝘀𝘁 𝗳𝗿𝗼𝗺..."

Denmark

𝗪𝗵𝗮𝘁 𝗦𝗲𝗽𝗮𝗿𝗮𝘁𝗲𝘀 𝘁𝗵𝗲 𝗕𝗲𝘀𝘁 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗥𝗲𝘀𝘁 🥇 I have been thinking about what makes some investors consistently outperform over time. It is not about being right more often than others. Even the best investors in the world are wrong somewhere between 20 and 40 percent of the time - which might surprise you if you think you need to be right all the time. In fact, you don't have to. The difference is how they handle it when they are wrong. When you enter a position that moves against you, something interesting happens in your mind. Your ego gets involved. You start looking for reasons why the market is wrong, and you are right. You tell yourself that if you just wait a little longer, the stock will recover and prove that your original thesis was correct. Sometimes you wait for months. Sometimes you wait for years. And sometimes you are never proven right 𝗯𝗲𝗰𝗮𝘂𝘀𝗲 𝘆𝗼𝘂 𝘄𝗲𝗿𝗲 𝘀𝗶𝗺𝗽𝗹𝘆 𝘄𝗿𝗼𝗻𝗴 𝗳𝗿𝗼𝗺 𝘁𝗵𝗲 𝗯𝗲𝗴𝗶𝗻𝗻𝗶𝗻𝗴, and no amount of waiting will change that. This is where most investors fail. They treat a losing position as a personal challenge rather than what it actually is: new information from the market that your thesis might be flawed. Last year, I entered $NOVO-B.CO (Novo Nordisk B A/S) (Novo Nordisk A/S) too early. Due to a series of unfortunate events, the stock declined, and I exited the few positions I had with losses of around 22-35 percent. After I sold, the stock fell another 23 percent before eventually turning around. The point here is not to discuss Novo Nordisk or whether my original thesis was right or wrong. The point is that exiting quickly freed up my capital for other opportunities, rather than having it trapped in a position that was moving in the wrong direction. There is a mathematical reason why this approach works. In the stock market, the asymmetry between gains and losses is heavily tilted in favour of the patient investor. A stock can only fall 100 percent, but it can rise 200, 500, or even 1000 percent. This means that 𝗼𝗻𝗲 𝗴𝗿𝗲𝗮𝘁 𝘄𝗶𝗻𝗻𝗲𝗿 𝗰𝗮𝗻 𝗺𝗮𝗸𝗲 𝘂𝗽 𝗳𝗼𝗿 𝘀𝗲𝘃𝗲𝗿𝗮𝗹 𝗺𝗼𝗱𝗲𝘀𝘁 𝗹𝗼𝘀𝗲𝗿𝘀, but only if you actually let the winner run instead of taking profits too early. Some of my best investments last year illustrate this perfectly: $MU (Micron Technology, Inc.) (Micron Technology, Inc.) returned 256 percent, $SSRM (SSR Mining Inc) (SSR Mining Inc) returned 112 percent, $CRDO (Credo Technology Group Holding Ltd) (Credo Technology Group Holding Ltd) returned 101 percent, and Leonardo also delivered strong triple-digit gains. When your winning trades are three to eight times larger than your losing ones, something powerful happens. You can afford to be wrong on half of your trades and still generate substantial returns over time. The math tilts in your favour, and that edge compounds year after year. Peter Lynch, one of the greatest investors of all time, put it perfectly: "Selling your winners and holding your losers is like cutting the flowers and watering the weeds." Most investors do exactly this. They take profits on their winners because it feels good to lock in a gain, and they hold on to their losers because selling would mean admitting they were wrong. Over time, their portfolio becomes a garden full of weeds. I try to do the opposite. Cut the weeds early. Let the flowers bloom. Thanks for copying and following 🙏 $SPX500 𝘊𝘰𝘱𝘺 𝘛𝘳𝘢𝘥𝘪𝘯𝘨 𝘥𝘰𝘦𝘴 𝘯𝘰𝘵 𝘢𝘮𝘰𝘶𝘯𝘵 𝘵𝘰 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵 𝘢𝘥𝘷𝘪𝘤𝘦. 𝘠𝘰𝘶𝘳 𝘪𝘯𝘷𝘦𝘴𝘵𝘮𝘦𝘯𝘵𝘴 𝘷𝘢𝘭𝘶𝘦 𝘮𝘢𝘺 𝘨𝘰 𝘶𝘱 𝘰𝘳 𝘥𝘰𝘸𝘯. 𝘠𝘰𝘶𝘳 𝘤𝘢𝘱𝘪𝘵𝘢𝘭 𝘪𝘴 𝘢𝘵 𝘳𝘪𝘴𝘬.