Are we in a bear market? I don’t know. taGMan is off 19.3% year-to-date as of Friday’s market close. Comparatively, the NASDAQ is down 20.8%. The S&P 500 has declined 12.9%. The Cathie Woods technology heavy ARKK Invest ETF has lost an incredible 50.2% of its value since the beginning of this year. And for those believing Bitcoin is some magical hedge against inflation, its value has declined 18.8% this year.
Markets rise and fall. As an investor, this is out of your hands. The ability to invest in great companies with effective management always endures, however. I believe the companies making up the taGMan portfolio are enduring choices (Tesla, Apple, Google, Microsoft, Amazon, Nvidia, General Motors). These are companies helping me act like Warren Buffet, believing my taGMan companies will be long-term winners without letting the market convince me otherwise. In the past two years, taGMan has a compound annual growth rate (CAGR) of 83.9%. The CAGR of taGMan over the past five years is 48.9% annually. These annual returns beat many comparative market or ETF indexes.
An entire generation of investors built their perspectives on valuation during the second half of a 13-year bull market run. The “unlearning” process could be painful. - Bill Gurley
The Bill Gurley quote above essentially suggests that many investors have never experienced a sustained market downturn, and will struggle to understand why their stock valuation strategies are wrong. But if you’re invested in great companies, it’s the long-term that will win the day irrespective any predictions about the direction of the market.
Learn from Warren Buffett’s advice spoken in 2010 at the Berkshire Hathaway annual meeting. “What counts is buying good businesses at a decent price, and then forgetting about it for a long time. Some people can do it, and some people can’t.”
What I’m Reading, Watching, and Hearing
Disclaimer
TaaSMaster, LLC is not a registered investment advisor or broker/dealer. All investment opinions expressed by TaaSMaster, LLC are from personal research and experience of the owner of the site and are intended as educational material. Although best efforts are made to ensure that all information is accurate and up to date, occasionally unintended errors may occur.