I came here to see if there is any panic and saw your post :D...

I came here to see if there is any panic and saw your post

This is a very difficult industry with low barrier to entry and high margins to protect. Passive investing is on a killing spree and you should sell since every 1% drop of market probably means 1.5%-2% drop in operating profit, assuming the market does not rise shortly, and probably will fall further. Of course, a lot of people simply panicked. But if you look back 10 years, you could see that the management of FID has done amazing stuff despite the market essentially remained flat. The fundamentals are still intact and I think this company will do very well over time.

EX-cash, FID is trading at 15X 2017 P/E while growing at 20-25% and should be paying 4% dividend this year while ROIC is well over 100%. Heavy insider ownership, almost no dilution except for the shares issued in acquisition, long term track record and tremendous platform value not reflected in the EPS. AU also has a built-in mechanism(SA) for asset growth in the long run. I wonder who is selling at these prices.

I run my family's finance and my iron rule is that I always keep 2 years' living expense in the bank account, earning nothing. Since we do not own any real-estate, we can live on those money easily for 3-4 years if we want, should we cut a few vacations in between. We always saved money since our marriage 17 years ago and we never outspent our income, not to mention the principal. Those disciplines give us tremendous advantage when we choose what stocks to buy and for how long we want to hold them. The way to win in my opinion in the stock market, is to look at it as a long term game. But it is impossible if you involve it with your real life or emotional attachment without a Chinese Wall between them. In my managed accounts, I found often the accounts I cared the least do the best, and trade least often.

I am looking at another Polish company called CD Projekt Red. This is another one that really requires a long term horizon to work.