One HUGE Key to Building an Anti-Fragile Portfolio

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Up down. I’m trying to think of various other things. Mr. Miyagi said in Karate Kid, remember it was like paint the fence up down. Again, you could listen to the chattering classes on the business networks. One will say the market’s going up. The other one will say it’s going down. Yeah. But again, they’re having a grand old time doing that. And who, what, where, where’s the stock market going to go? Where’s

Where are the bears hide? Nope, the bull market’s gonna keep running. Yeah, I’m not a big fan of the whole animal breakdown when it comes to markets. None of it matters. No, no, no, I say that all the time. Doesn’t matter to us here at Markowski Investments. One of the biggest mistakes that investors make, and this is not just ordinary folk out there. These

the same fools, the money managers that you’ll see on TV is trying to predict the market. Rather than trying to guess, rather than trying to guess what the next major move the market’s going to be up, down, sideways, backwards, forwards, you want to have a portfolio that can handle extreme situations. You want a resilient, I said I don’t even like using the word resilient.

anti -fragile and I’m stealing that from Nicholas Tallad. The average investor in stock mutual funds, it’s down here, made 3 .8 % a year over the past 30 years. That’s less than a third of the S &Ps average gain over that period of time. It’s horrible. Why? Well, people buy high and they sell low. There’s a…

professor that I’ve cited going back to the 1990s. This guy, he’s at Berkeley right now. His name is Terrence Odin and he studies investor behavior and he has demonstrated, demonstrated during the 1990s during the dot com run up he’s been doing over the years. Investors continually buy and sell stocks at the wrong times.

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sell stocks that are undervalued, that are poised to rise, and they purchase stocks that do worse than the ones that they sold. They did worse, this is his quote, they did worse than if they had been throwing darts.

Okay, how does one determine a top? I’ve mentioned this and it’s in our financial independence top 20 actually. When markets are going up like gangbusters, believe it or not, that’s when your portfolio needs the greatest amount of attention and maintenance. Say that again. When markets are running through the roof.

That is when your portfolio needs the greatest amount of attention and maintenance. Why is this? Okay. Back to Mr. Miyagi. Mr. Miyagi. Yes. 1980s film. Karate Kid. Mr. Miyagi explaining to his karate student, Daniel. Daniel’s impressed. Daniel’s impressed with the bonsai trees there and how, you know, form, how beautiful they are. And he asks, he’s,

Ask him how he does it. Mr. Miyagi tells Daniel Sonia, cut here, snip there. know, first it was a picture tree, picture tree, close your eyes, picture tree on your head. And you take care of the tree. You cut here and you snip here. Proper portfolio management entails, in essence, that the same delicate continued touch and maintenance

where you are trimming positions that get oversized, reallocating assets elsewhere.

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This is how you may, you get a company that’s a great company and this might be a company in your portfolio that you think is gonna go much, much higher. Much, much higher over the next five, 10, 20 years. But guess what? That thing has gone up like gangbusters and then you’ve got other companies in your portfolio that have lagged. They’ve lagged for whatever reason at that point in time. Markets are not favoring, whatever it may be. You take some profits off the table, you cut, snip, there.

and you reallocate those assets. Yes, again, I know what we teach here on the program, not popular, not popular on the business programs out there. Nobody really talking about this at all, because again, it’s not exciting by any stretch of the imagination. A lot of bad teachers in the financial world. what did Mr. Miyagi say? He said, no such thing, bad student, only

Teacher, stop listening to bad teachers. Watch Dog on wallstreet .com.