Weekly recap: After a very difficult Monday, our portfolio of stocks have rebounded to new YTD highs after three extraordinary days. As of EOB (end of business) today, the portfolio is up 59.2% YTD while the S&P 500 is up 15.2% YTD. We are currently roughly 4x the benchmark index, i.e. S&P 500). I do not anticipate that the market as a whole can continue to do as well as it has so far this year (the 100 year average is closer to 8-9% on average), but I fully expect my high growth portfolio to continue beating the S&P, the NASDAQ, the Russel 2000 and certainly the DOW handily.
I was asked off line if I would invest at these prices after the last three days of gains. My answer is as follows:
3-4 years ago pundits started warning of the pending recession and down turn in the economy. It simply could NOT last…and it can’t. But had I not methodically invested in these fast growing companies (always in thirds of a position or more), the opportunity cost to me the past three years would have exceeded 300% returns. I certainly would never advocate taking complete positions immediately, but dip your toes in the water, take a 1/3 position, follow the company and listen to the earnings calls…of course the pundits will eventually be right and we will have a downturn or even a recession or another crisis like 2000 or 2007, but if you are in it for the long term, you DO NOT overleverage with options or margin trading, and own the right companies, you will prevail in the long run and your retirement account will thank you. We have over 100 years track record to show it…and that is the indexes. Just think what you can do if you are investing in only the best of the best growth companies riding the wave of the digital revolution. This is a LONG haul game…I did not start three years ago. I started in 1992 and certainly NOT with the knowledge I have today…but I started learning and am pretty darn happy I did now. Happy Friday!!
I’ll take that is an otherwise down market today!
User comment: Luckily I did one set of my purchases
