Every investor has likely heard the adage “You can’t time the markets” or one of the other favorites, “Time in the markets beats timing the markets.” The adages are cautionary tales for new investors who believe they’re smarter than the markets and should be able to outperform by waiting for the next big pullback.
… and, often, more seasoned investors (*cough* me *cough*) could serve to re-learn those adages as well.
I’m regularly reminded of those valuable lessons as I stare at the giant cash hoard in this portfolio; it continues to haunt me as I stubbornly wait better buying opportunities. However, I’ve spent the past few months getting more and more aggressive by raising my buying targets, adding more frequently, and even raising my cost bases in several positions (my absolute least-favorite activity in the entire investing world).
I have no choice. When I see underperformance like this – especially continued underperformance as this portfolio is now more than four years old and is dramatically lower than the S&P 500 or even the Dow Jones Industrial Average, it’s further reinforcement that I am, indeed, handling this portfolio wrong.
So, let’s see if I can stop whining about it and start doing something about it!
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