The end of the year often brings a swirl of emotions for me, and this time was no different. As a result, I didn’t devote much energy to tracking the markets in November. Looking back, that decision was a good one. Many of the gains from earlier this year evaporated in just 2 months, underscoring how volatile the markets can be. My portfolio dipped by 4.33% during November, even as many others celebrated profits in crypto and AI investments. It’s kind of funny, isn’t it?
But here’s the thing: I’m playing a different game—one that rewards patience over impulsive transactions. This approach reflects a long-term mindset, focusing on enduring growth rather than chasing short-term highs.
Charlie shared his thoughts on this, and I wholeheartedly agree:
"The big money is not in the buying or selling, but in the waiting.” - Charlie Munger
This simple yet profound statement captures the essence of long-term investing:
Munger distinguishes between investing (buying quality assets for long-term growth) and trading (quick buying/selling for short-term gains).
Long-term investing, or "waiting", reaps benefits from compound growth, even through market ups and downs.
It's about patience, letting investments grow and reinvesting returns to build wealth.
Avoiding knee-jerk reactions to short-term market noise.
While simple in theory, practicing this kind of discipline is undeniably challenging. It’s a skill that rewards those willing to master it.
The Chinese stock market exhibited significant volatility in November. The Shanghai Composite Index faced declines, reflecting weaker-than-expected retail sales. However, it remains up about 13.66% for 2024, thanks to earlier stimulus measures. Despite these gains, consumer sentiment is still fragile, with many hesitant to spend due to ongoing economic uncertainties. I’m optimistic that this cautious mood will eventually shift, leading to robust growth in the future.
November wasn’t my strongest month, with my portfolio experiencing a time-weighted return of -4.33%. The losses primarily stemmed from market value declines in certain stocks. On the brighter side, small trades and dividends softened the blow. I've increased my portfolio by adding 50 shares of BIDU 0.00%↑, increasing my holdings in OXY 0.00%↑, and adding 400 shares of PAGS 0.00%↑across various transactions. I also expanded my investment in Ring Energy REI 0.00%↑.
These moves align with my belief in building a strong portfolio for long-term growth. Each addition is part of a broader strategy to stay focused on the bigger picture, rather than being swayed by short-term market fluctuations.
Closing Remarks
November served as a valuable reminder to keep emotions in check and focus on the process. This lesson applies not just to investing but to life as a whole. The discipline to stay steady amidst uncertainty often yields rewards over time.
A book that particularly resonated with me this month is Richer, Wiser, Happier by William Green. It offers insightful perspectives on the mindset required for successful investing and living a fulfilled life. The discussions on stoicism, cultivating strong habits, and embracing financial and mental simplicity are truly inspiring. If you haven’t read it yet, I highly recommend giving it a shot—it’s a gem.
Thank you for joining me on this journey. I hope my reflections and experiences provide some insight into navigating the ever-changing market landscape.
Remember, investing is a marathon, not a sprint. Patience, optimism, and a steadfast focus on what truly matters will always steer us in the right direction.
"The end of the year often brings a swirl of emotions for me, and this time was no different."
What kind of emotions/why?
Personal emotions sometimes make me question my judgment. When I notice this, I take a step back and avoid making significant investment decisions.