Disciple | Husband | Father | Writer | Investor | Here to learn and encourage. Grateful our paths have crossed🙏🏻 https://enroll.ship30for30.com
For principle #5, we find ourselves back at the horse track, and this time, we have a unique advantage. We get to invest through the whole race.
This means we can see who is winning and have the opportunity to add to our positions.
"We're probably buying high and trying not to sell until the very end of the race in a world in which everybody else is trying to buy low and sell high."
Like many Rule Breaker principles, this one goes against conventional wisdom.
Most investors are scared away by winners. They worry they can't maintain their lead or the price is too high.
Instead, they focus on losing businesses, convinced they are a bargain.
If we revisit two of our Rule Breaker Habits, we know what to do ... Let your winners run high and Add up, don't double down.
As the race plays out, we focus more of our time on the businesses that are winning. The losers get less attention, and our portfolio becomes concentrated on winners.
It's essential to remember risk management here and abide by your sleep number.
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