We are all fighting the same battles: Riding a winner deciding if you should hold it. Holding a loser deciding if you should sell it. Sticking with a stock that has gone nowhere for quarters/years questioning your thesis. You aren’t alone. We are all fighting the same battles.

More from Ian Cassel

Poor Investors often disguise inexperience with arrogance. Rich investors disguise experience with humility. The richest person in the room is usually the quietest one in the room. The poorest person in the room is usually the loudest one in the room.

Ian Cassel
@iancassel

I became financially independent in 2008 at age 27. Or as my Father likes to say, I retired. Yeah right. It’s more like you exchange security for total insecurity.

I get asked a lot about how much capital you need to become a full-time investor. That answer will be different for everyone. It’s a personal decision. I was single with no kids living in Lancaster, PA. It was a great time to make that decision.

I would say a much better question is how much pain can you endure.

Can you sustain a 30-40-50% drawdown while also drawing it down to pay bills?

How would this affect you emotionally, psychologically?

Would two or three bad years in a row cripple you?

At what point would your investment strategy start to crumble by these emotions?

At what point does my advantage of “focus on the long-term” shift to “this next quarter needs to be good” or else..

Am I mentally prepared to perhaps go to my wife and tell her I failed and can’t support us anymore? That I need to get a job, that she needs to get a job.

Ian Cassel
@iancassel

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and crave action.

Ian Cassel
@iancassel

One of my favorite

Forbes estimates that Beanie Baby creator Ty Warner’ net worth is $2.7 Billion. This is an amazing achievement considering a bulk of it was earned during a 3-year time frame selling a $5 per unit stuffed animal.

The fact that Ty Warner’s Beanie Babies were able, without the benefit of a single ad, to outpace the combined annual profits of the largest toymakers in the world for even a few years is unprecedented.

To illustrate how quickly the bubble grew - In 1995, Ty Warner’s company Ty Inc had sales of roughly $28 million. In 1996 sales were $280 million with $90 million in pre-tax income. By 1998, Ty Inc sales reached $1.34 billion with pre-tax income of $700 million.

In Ebay’s 1998 Annual Report it disclosed Beanie Babies as material. “At times, approximately 7% of our listings involved Beanie Babies”. Furthermore, it was said that 10% of Ebay sales at the time were derived from Beanie Babies.

Ian Cassel
@iancassel

Your portfolio will naturally concentrate itself, the way it should be, into your winners if you just stay out of the way.

More from Wise investing

Vivek Mashrani, CFA
@MashraniVivek

Share Market is only place where except fall in markets n euphoria,

Majority of the times

Fall in price ≠ CHEAP / DISCOUNT

And rise in price ≠ EXPENSIVE

Business performance is ignored

Many keep averaging down n don't add at higher price when business improves

#investing

SKJ
@skj_102

Investing Lessons from the greatest investors of all times.

Peter Lynch, Charlie Munger, Sanjoy Bhattacharyya and Philip Fisher.

Some notes on investing, savings and power of compounding!

Will keep adding stuff.

Like and retweet for wider reach.

A thread of threads!

Lessons from Peter Lynch. Best selling author of the book "One Up on Wall Street" and fund manager of one of the best performing mutual fund in the

Investing lessons from Peter Lynch.
- Legend of Stock Markets
- Author of book - "One Up on Wall Street"
- Managed one of the best performing mutual funds in the world.@dmuthuk

Thread\u2b07\ufe0f
— SKJ (@skj_102) June 3, 2021

Lessons from Charlie Munger. Warren Buffet's long-time friend and one of the greatest

Pearls of Wisdom from Charlie Munger and the lessons we can learn in our investing lives.

Let's not make the same mistakes again!@dmuthuk @contrarianEPS

Thread\u2b07\ufe0f
— SKJ (@skj_102) June 1, 2021

Lessons from Sanjoy Bhattacharyya. One of the legends of Indian Stock Market and a mentor to many great

Investing Lessons from Sanjoy Bhattacharyya - One of the legends of Indian Stock Markets and a mentor to many great investors.

These lessons are from the Morningstar Investment Conference when @safiranand had a conversation with Sanjoy Sir.@dmuthuk

Thread\u2b07\ufe0f
— SKJ (@skj_102) June 2, 2021

Lessons from Philip Fisher. One of the best selling authors of the book "Common Stocks and Uncommon

Wisdom.@dmuthuk pic.twitter.com/UOZJ18xLju
— SKJ (@skj_102) May 26, 2021

D.Muthukrishnan
@dmuthuk

The effect of instant information is immediate reaction, even when no reaction is warranted.

D.Muthukrishnan
@dmuthuk

Aggressive investors don't last very long. Conservative ones do.

ValueStockGeek
@ValueStockGeek

Things I learned from back tests:

1) Value works. It really doesn't matter what the metric is.
2) Bad balance sheets are fine until there's a 2008.
3) Ignoring valuation works until there is a 2000.
4) There isn't a an all-equity portfolio that will resist a 2008/73-74.

I also found a bunch of strategies that delivered 20% CAGR's and at some point had a catastrophic drawdown. Also found strategies that seemed 'safe' with hyper CAGR's like 20%+ that stopped working the moment I invested in them. If it sounds too good to be true, it probably is.

Meaning:

Oh Bhumi Devi! The entire universe is my body (sarIram).
I do not have births or deaths .

When my bhakthAs with mahA visvAsam (utmost faith) surrender to me, while they are still in a state of tranquil mind and healthy body and reflect about Me as as SarvAdharan (root cause
of all),
NiyanthA (One who commands from within),
sarva sEshi (the ultimate),

aasrayaNeeyan (One who is fit to be worshipped),
Sarva VyApthan (all-pervasive) and
Nithya sannihithan (One who is always near),
THEN
I think of them at their last moments, when they are totally unconscious like a log or a stone
and lead them by archirAdhi

maargam to My parama padham and bless them to have nithya kaimkarya bhAgyam to Me there.

$Julien \U0001f332$

Julien 🌲
@julien

1/ there is this sense when you are young that your accomplishments need to be a list of things that seem impressive to others. A list of several items you did.

This isn't actually right, so here is another suggestion.

2/ I remember being 26 and writing about reading 52 books a year. I wrote blog posts about it. They got copied. It became "a thing." Now it's in Twitter bios. It looks impressive but it's insanely useless and I shouldn't have done it.

3/ what I should have known at that time is that only young idiots like myself, with no accomplishments, find list of tiny achievements impressive. Anyone who has actually done anything of substance doesn't gaf

4/ what is actually difficult, and worthwhile, instead is to do ONE single thing for a very, very long time. It's much harder and much rarer and results in outlier outcomes much more often.

Of course you can find this out too late if you are chasing the dragon of Ted talks etc

5/ if I had only worked on a startup for a year, I would've gotten nowhere, the same way that if you lift for 3 months, it achieves nothing. Everything good in life comes from perseverance, but at the beginning, you're just like "I need to be somebody!!!"

Simon DeDeo
@SimonDeDeo

This is a pretty valiant attempt to defend the "Feminist Glaciology" article, which says conventional wisdom is wrong, and this is a solid piece of scholarship. I'll beg to differ, because I think Jeffery, here, is confusing scholarship with "saying things that seem right".

Imagine for a moment the most obscurantist, jargon-filled, po-mo article the politically correct academy might produce. Pure SJW nonsense. Got it? Chances are you're imagining something like the infamous "Feminist Glaciology" article from a few years back.https://t.co/NRaWNREBvR pic.twitter.com/qtSFBYY80S
— Jeffrey Sachs (@JeffreyASachs) October 13, 2018

The article is, at heart, deeply weird, even essentialist. Here, for example, is the claim that proposing climate engineering is a "man" thing. Also a "man" thing: attempting to get distance from a topic, approaching it in a disinterested fashion.

Also a "man" thing—physical courage. (I guess, not quite: physical courage "co-constitutes" masculinist glaciology along with nationalism and colonialism.)

There's criticism of a New York Times article that talks about glaciology adventures, which makes a similar point.

At the heart of this chunk is the claim that glaciology excludes women because of a narrative of scientific objectivity and physical adventure. This is a strong claim! It's not enough to say, hey, sure, sounds good. Is it true?