"When you hit a home run in investing, you can keep circling the bases over and over." - David Gardner
The stock market gives investors a unique advantage. The downside of any investment is 100%, while the upside is unlimited.
Unless of course, we get in the way.
"The first rule of compounding: Never interrupt it unnecessarily." - Charlie Munger
When a business is winning, it typically continues to win.
As a Rule Breaker investor, you've done the hard work of identifying great businesses. Now it's time to let the leaders of those businesses do the heavy lifting.
Selling a stock after a 100% gain sounds great. But we often underestimate how big a business can get and leave multiples of our original gain on the table.
Most investors will tell you the biggest mistake of their career has been selling too soon.
So, if the business is winning, the best thing to do is let it run.
Don't forget. The key is to have a long-term mindset.
You want to buy businesses you can hold for at least 3 years and hopefully 3 decades (more on that later).
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