Okay, I’m feeling a little disgusted with me right now. Why? Because I’m feeling in a better mood this afternoon than I was this morning. Why you ask? The color of the numbers on my screen are mostly green than red. The Dow was up 4.68%, NASDAQ up 5.49% and the Russell 2000 was up 6.86% after being significantly down in the AM. Oil dipped below $70! Why is feeling in a better mood a problem you ask? Because I fell into the trap of looking at what has been happening today and letting it “color” my perspective rather than focusing on the huge long term opportunities we are positioned for in our portfolios. If the “color” was red it doesn’t change the opportunity. Yes, I’m happy for all our clients whose portfolio value went up today but I shouldn’t lose sight of the REAL issue and that is to have a portfolio of superior securities that will benefit our clients for the long-term. Superior enterprises that have valuation metrics that have not been this attractive in decades! What happens in one day, week or several weeks won’t change the fact that we have valuations that haven’t been this attractive in decades. Warren Buffett knows how important valuation is to the probability of success. The valuations are the reality and what we need to focus on, not the short-term fluctuations and fears of those who are selling.
It should be expected that the lows seen last week will be tested a few times so we will see more “red” days. In a larger sense that volatility will only serve as a distraction to the longer term objectives we have for our portfolios. If you have any questions about your portfolio don’t hesitate to give us a call. That’s what we are here for!
Here are some interesting links: