- There are so many variables that determine short term and long term outcomes of processes
- The valuation of a business and the markets are relative
- What someone else is willing to pay for something, someone else might not be willing to pay
- Facebook question: I am a mutual fund guy and if I do single stocks, it would not be one of the FAANG stocks. What are my options? Do i stick to contracts or smaller shares?
- Mutual funds can be great for people who are just starting to invest
- Designed to bring diversification, but it may not bring you asset allocation
- Many investors think that when they own many mutual funds they are diversified, which they are but they are missing the asset allocation and different classes
- If you’re going to invest in individual “stocks” your mentality should be that of a business owner
- We see volatility as an opportunity
- You don’t make or lose money until you sell
- Stocks don’t trade on a timeline or based off of emotions
- Price to earning ratio of the S&P500
- Trading at 16-16.2 times earnings
- It all depends on how you are managing the process
- When you look at economic indicators, things look very good
- But everyone is worried and focused on the short term instead of the long term
- Volatility is going to create the opportunity for you to take advantage of the businesses you own on sale
April 24, 2018