@h00ts. Well I have you to thank for telling me to be careful of having over 90% of my share portfolio in a single stock regardless of how strong your conviction may be in a stock. I was lucky enough in March 2020 that its SP was unaffected while some strong bluechip dividend paying stocks were all going for 10 year bargain basement lows. It was not a easy decision to make but when you end up holding more the CEO and all but bar one director of the stock its time to be prudent to diversify like they did as I am sure they were in the same position of the stock making up too much of their portfolios as well after going up more than 10 fold.
I feel in a much better place with all the turmoil and swings in the market place even if the dividends are slashed again we will never be in the position to be forced sellers in the future. I have no sympathy for the Hedge funds and what they are going through. I have always had no respect for people who dont create any real wealth through making the effort and taking a risk in bringing a product or service to market. These parasites are happy to use other peoples money without risking their own while making ridiculous over the top amounts of money that no one needs to make in a lifetime.
Fair enough when you get founder and CEO of a big company making big ticket purchases but when you see owners of Hedge funds buying a $100m holiday home, $300m yachts and purchasing sporting teams then I have no sympathy for them when they make a bad call. 30 years ago I was convinced by said brokers that I should invest in call and put options to supercharge my wealth creation. Biggest mistake was I got lucky and made 5 profitable trades and thought I was smartest kid on the block and it was easy money. I got greedy and stayed in a trade to long and was in the red the next day. I continued to add to my position until I closed it with a loss equivalent of a years worth of my wages at the time. I never had the privilege that they have of ringing the regulators and people in government in positions of power or asking for handouts to bail me out. Its ok for the big end of town to pickpocket our hard earned attacking stocks we own and that are in our super but when the tables are turned they cry foul. No one needs the amount of wealth they have accumulated at others expense in one lifetime and people have had a gutful of the big end of town excesses and greed in always wanting more and more wealth and toys.
Like I have said before you need to be in the position not to have to access your shares if you lose you job or take a 70% pay cut for a year or two. You only need to be 10 to 15% in cash to take advantage of a big drop like we had in 2008 and 2020. Any more than that in cash then you are missing out on share gains and dividends. Look at the Dow and ASX graphs, despite shocks to share-market thru events like these, wars, 911 and covid events eventually they recover and go onto new highs. I have put ourselves in the position of not having to worry about the next big drop as we will have enough to live off and take advantage of any forthcoming correction whether its this year or 10 years from now. I am following the Warren B approach in not trying to time anything but having something on the side to add to positions if the scenario you envisage comes sooner than later.
Out our stage in life its all about protecting what you have worked hard for and not accumulating more and taking on more risk.
