Portfolio volatility is mitigated with diversity so having a few good ideas increases the odds of success and ideally making it a smoother ride. People underestimate and neglect mentioning the emotional toil of being heavy in a narrow spectrum of assets. Time to time someone brave enough here will put their hand up and omit the tough time they're having. Others just blame the shorters and put it out of mind I assume. It's easy to look at nvda on a chart and say 'wow I totally knew they had the right technology before everyone else - if only I had just believed in myself and bought and held it when it was a penny stock'. Several 50% and a couple of 85% + draw downs would absolutely rinse anyone out if they were heavily concentrated in that with their savings. Anyone saying yeah they could do it shouldn't be giving financial advice.
"Any successful investor will dictate to always have an investment realisation thesis and to act on it when the variables are met, regardless of one's emotional attachment to that investment."
Excellent point. Making sell rules are tricky for some reason so it's no wonder most people don't have them.
Lots of assumptions and bias in that. WBT is very much a trading stock - low float and reasonably high ADR. Has loads of believers resonating the story out there and I suspect there will be many impulsive moves led by big fish and chased by small fish. When it matures with reliable revenue then you have, in my view, your buy and hold. It's a spec right now with no certainties that I am aware of at this very minute.
But that's just me talking through my lens and how I see risk. Your setup sounds very different to mine with neither of us being right or wrong. Buy and hold is too risky for me given the nature of black swan events and market cycles. I prefer the nimbleness of market timing. Of course I can't always get it right but I can avoid the catastrophic draw-downs. Having one of those in a buy and hold when you're looking to retire would be a disaster no?
WBT Price at posting:
$4.26 Sentiment: None Disclosure: Not Held
(20min delay)
