Avoid Portfolio Watching

A discussion about managing emotions and investment psychology during market downturns, particularly focusing on portfolio monitoring and maintaining conviction.

Market Performance Impact

• Shaan's portfolio down 30% from previous year's high
• Diversification helped limit losses
  • Amazon stock performed relatively well
  • Some crypto investments (like Luna) up 100%
  • Other crypto down 30-35%

Investment Opportunities in Down Markets

• Many growth stocks down 50-80% from all-time highs
  • Examples include Zoom, Fastly
• Warren Buffett philosophy referenced:
  • "Be greedy when others are fearful"
  • "Be fearful when others are greedy"
• Current market presents good 10-year entry points

Psychological Challenges

• Common knowledge vs. Emotional Reality
  • Everyone knows to "buy low, sell high"
  • Difficult to maintain conviction when portfolio is down
  • Psychological barrier to buying during downturns
• Cash Management Struggles
  • Challenge of having available cash for dips
  • Sam mentions only having $100k in cash
  • Difficulty of "buying the dip" without dry powder

Alternative Investment Approaches

• Traditional safety approaches questioned
  • Bonds yielding only 2%
  • CDs and market neutral positions discussed
  • Bonds criticized as "money losing position"
• Focus on long-term conviction over short-term market movements
  • 10-year time horizon emphasized
  • Looking for quality companies at discount prices