Record all time high closes in the S&P and Nasdaq yesterday. And this morning!! Record new IPOs this year. Record earnings and a very strong economy. Are we back in 1999-2000 getting ready for a 50% stock market plunge? Personally, I don’t think we are anywhere close to the same conditions as we were in 1999. So far earnings released are holding up or exceeding expectations (many had predicted they would fall this quarter). And whereas in 1999 many, many companies had no earnings and exorbitant valuations, we are in the middle of a very healthy earnings release season and a booming, healthy economy. I am looking forward to the earnings releases for the companies I own over the next 6 weeks and will be monitoring the companies closely for profitability, growth and strength. If you have been following the companies stock prices the past three days in the market, they have been on fire and are up 8-9% on average…in just three days. I encourage everyone to listen to or read a quarterly earnings release for just one of the companies you own. It really is the only way to begin to understand how a company is performing, know who the management is, and hear what challenges they face and where they think things are going, and to hear and feel their passion for the company….or lack thereof. Just pick one and do it! You won’t regret it and the more you read, the more you’ll understand the company.
As of today, I am up 50% since January 1 on my portfolio of 10 companies. In the last three years I am up over 200%. Eventually the pundits claiming over the past five years that the market is overdue for a massive correction will be right. It may even happen this year, though I am doubtful. Who knows!? Regardless, if I had stayed out of the market the past 5 years and listened to all the people crying Armageddon, I would have missed out on at least a 3x or 4x bagger. Put another way, even if All my company’s stock are down 50% tomorrow, I will still be up over 100% and have doubled my money the past three years. I don’t try to time the market or when it will correct. I just try to buy the best possible companies, growing at the fastest pace, with the best technology and a moat around it, incredible customer loyalty, management and financials. These companies will always outperform the average market.
So open your browser now, type in the name of a company stock you own, go into their company website, click on the investor relations tab, and subscribe to get an email notification whenever they release earnings or have news. Then read the next earnings release! It shouldn’t take more than 15 or 20 minutes , But will make or break how well you do investing.
Call or text me with any questions and I’m happy to discuss.
Happy investing! -V
