Stock Ticker Emotions

Andrew Wilkinson shares his experience of having his net worth cut in half through public market valuations, highlighting the psychological impact of having a public stock ticker versus private ownership. He emphasizes how public markets create constant emotional feedback that private business owners don't face.

Key Points:

• Public Market Impact:

  • His Tiny stock went from ~$750-800M to about half that value
  • Daily ticker creates radical swings in perceived net worth
  • Constant reminders of value changes affect psychology

• Private vs Public Ownership Psychology:

  • Private business owners don't see daily valuations
  • Real estate owners don't feel 20% neighborhood value drops
  • No ticker means less emotional impact from market swings

• Warren Buffett's Farm Analogy:

  • Owning a business is like owning a farm that makes $1M/year
  • Random people (yokels) shout different offers over the fence
  • If you know the true value, you can ignore the daily noise
  • Focus on fundamental business value, not market pricing

• Coping Strategy:

  • Know your business's true worth
  • Ignore daily market noise
  • Stay focused on fundamental business performance
  • Don't let market volatility affect decision-making

• Personal Approach:

  • Tries to maintain perspective despite large swings
  • Focuses on business fundamentals rather than stock price
  • Acknowledges it's "pretty weird" seeing such large value changes