This week I wrote about stock prices and how their direction influences our beliefs and decisions. Think about all the stocks you said you would buy if they ever dropped to a certain price. When the stock price finally drops, you quickly pivot, "ehh.. maybe I’ll buy it 10% lower". You do this three more times. Watchlist companies = a list of stocks you tell yourself you would buy if they drop, but when they do drop you never buy them. You just watch them. Then the stock bottoms and starts to rise. In an instant you mentally shift from “fear of loss” to “fear of missing out” and you take offers in the stock chasing it 30% higher to get a position. Stock prices pull on our emotions like a dog on a leash. We all suffer from stock prices driving the narrative in our mind. microcapclub.com/stock-price…

To achieve a multi-bagger in the portfolio, you have to hold a multi-bagger in the portfolio. You will have to hold while the stock 2-3-4x in a year. You will have to hold as the stock eventually pulls back 50% from its highs. You will have to hold as the stock goes nowhere for months, quarters, maybe years, as fundamentals backfill into the stock price. You will have to hold as expectations get too high or management has some eventual growing pains. You will have to hold when it's cheap, expensive, loved, hated and volatile - sometimes all in the same year. You will have to hold while your emotions are screaming at you to sell. But what makes it even more difficult is very few will deserve to be held through all of this. Most of the companies you own today only deserve to be rented. Ownership is earned. microcapclub.com/conviction-…

Oftentimes the best investment opportunities are already in your portfolio. You've already done the work and trust them. Don't be afraid to average up and own more of the management teams that are executing.