Portfolio Assessment Framework

A framework for maintaining conviction and evaluating investments during market downturns, focused on long-term thinking over emotional reactions.

Core Investment Philosophy

• Don't obsess over daily price movements
• Focus on 5-10 year investment horizons
• Separate market volatility from fundamental thesis
• Avoid emotional decision making during downturns

Portfolio Assessment Process

• Ask key questions:
  • "Has anything fundamentally changed about these investments?"
  • "Do I still believe in these investments over 5-10 years?"
  • "Am I buying the dip or chasing losses?"
• Avoid looking at portfolio daily to prevent emotional reactions
• Differentiate between buying opportunities vs. throwing good money after bad

Market Downturn Strategy

• Accept 25-30% drawdowns as normal in high-risk portfolios
• Focus on earning active income rather than relying on investments
• Maintain discipline rather than trying to time market bottoms
• Stay invested in core positions if thesis remains intact

Psychological Framework

• Treat down markets as normal rather than catastrophic
• Use poker mindset to avoid "tilting" or emotional decisions
• Focus energy on income-generating activities
• Maintain conviction by focusing on fundamentals over price action

Risk Management

• Keep some positions in stable assets (like Amazon stock)
• Balance high-risk positions with more conservative ones
• Avoid overleveraging or overconcentration
• Accept volatility as part of high-growth investing

The key is maintaining emotional discipline while systematically evaluating whether your original investment thesis remains valid, rather than reacting to short-term price movements.