This article is a a website version of our weekly FREE Best Ideas Newsletter. Sign up here to get it in your inbox every Tuesday.
With the August 2022 issue of the Quant Value Newsletter, we are starting our second Crash Portfolio.
This follows the very successful Corona Crash portfolio we started in April 2020. The 26 companies we recommended had an average return of 56.4%.
Crash Portfolio Rules
In the Crash Portfolio we are recommending the most undervalued high-quality companies with a strong balance sheet we can find.
You can read more on exactly how we select the ideas as well as how we keep losses low by clicking the link below:
Now on to the Mind Game part…
The Mind Game
Rule #3: Know who you are and stick to it
This week’s Mind Game note is from the great book The Psychology of Money: Timeless Lessons on Wealth, Greed, And Happiness by Morgan Housel. It is a short great read I cannot recommend highly enough.
Aim to be reasonable
Your aim when making financial decisions is to be reasonable.
As you know there is no exact right answer in investing, even though the media always makes it seem like there is. For example, there is no best investment strategy that ALWAYS works.
Being reasonable is more realistic. You then have a better chance of sticking to your plan in the long run, which is what matters most.
If you are a reasonable investor who loves your imperfect strategy, you have a huge advantage because you are more likely to stick with it in good and bad times.
There are few financial variables more linked to great long-term performance than commitment to a good investment strategy, especially in bad times.
Your Crash Portfolio analyst wishing you profitable investing
PS To sign up for the Crash Portfolio investment ideas click here.
PPS It is so easy to forget, why not sign up now before you get distracted?