Now is not the time to be a lazy investor. Now is the time to set the portfolio up for the next upswing. It’s basically time to do real work (due diligence) that will supercharge the portfolio. I am personally finding a few new picks here and there which have been companies I have looked at but deemed to be a bit too expensive. At this point in time some of them have retraced over 40% and have suddenly become no brainers from a risk/reward stand point. When no brainers are rare I have a very concentrated portfolio. Right now, with an abundance of opportunities, my portfolio is more diversified than ever.
A company that had 100% upside to fair value, and falls by 40%, now has 233% upside to fair value. If one gets lucky with some stink bids, near sector lows, it can have material impact on the portfolio’s future returns…
Again, don’t get lazy, get busy… And thank the sellers who have no clue about just how much money there is on the table that they are walking away from.
Every correction is followed by a rally and every rally is followed by a correction.