I don’t assess my portfolio’s performance on a weekly or monthly basis. Instead, I focus on evaluating how much I can potentially gain over a cycle in term of years. The period must be long enough to smooth out short-term volatility and capture the broader trends of market cycle.
This approach can often lead to more consistent and successful outcomes which is the ultimate objective. So far so good. Up to this point, all of my clients have consistently avoided losses in their portfolios throughout market cycles.
Look beyond the surface. Focusing on the longer-term performance can help you avoid getting caught up in short-term fluctuations and emotions. It allows you to assess your investments with a more stable perspective and see how they perform over various market conditions.
I had an awesome discussion with some clients who possess greater empathy and appreciate the challenges I face in striking a balance between patience and pragmatism in my daily work. They have all tasted the sweet profit over the years and appreciate that I would rather be right on market strategy than popular.
They also know that I don’t take a lot of vacations. This is the type of “rational” investors I aspire to work with for years to come.
Lastly, try not to let the quarterly performance chart of some positions displayed here influence your mood. My work monitors multiple positions covering a range of asset classes and what you see is a sample of actual positions that constitute certain portfolios.
