3-Bullet Sunday (Platform Companies, Know When to Give Up, Dealing with Volatility)
Happy New Year!
Year 2021 has been great.
I look forward to creating more content around investing for you going into 2022.
If you have any topics you like me to cover, please feel free to reply directly to this email!
I. Winner-Take Most Companies
Internet/Platform companies creates winner-take most companies.
And here’s the thing, they become stronger as they grow in size.
II. Knowing When to Give Up
Here’s something I wish I knew earlier—when to give up.
While there’s a lot of books surrounding grit and pursuing your goals, there isn’t much on giving up.
Most see the abandonment of goals as failure, but pursuing goals when you realize they no longer serve you or you know that the outcome isn’t what you expected is foolish.
Sometimes failure teaches us what we should be pursuing instead.
Mark Manson has a helpful article on knowing when to give up
III. Volatility Takes a Bite
Drawdowns are part of investing, as you know.
Even great stocks have nasty, gut-wrenching declines.
Think of the Bessembinder study, which reviewed the top 100 firms that created the most value and found this about their stock prices volatility:
Check out Chris Mayer’s article on dealing with volatility here.
That’s it from me!
If you enjoyed today’s newsletter, do share it with your friends :)
-Thomas Chua
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