I’m going to start ramping up and expanding the frequency of posts for the Patreon subscription service (which you can access by clicking here) by moving to a mid-week and weekend posting schedule. For a while, I have been flummoxed on the best way to increase the amount of content I produce because I only make so many investment decisions per year.
To that end, I am going to add more financial investing philosophy articles, analyses of tempting decisions that should be avoided, and assessments of stock performances for companies that I already own.
In this spirit, I just published an article titled “Understanding How Capital Works” that criticizes the mantra that an investor cannot go broke taking a profit. For a specific example, I point out that investors in Ross Stores could have easily sold in 1989 after the stock tripled in the prior year but then missed out on the 19% annual compounding over the next thirty years.
There is a well-known stock today that is trading at over 30x earnings that I have encountered sensible long-term investors saying that thay are selling, and in response, I provide several reasons why I believe that will be a Ross-stores type of mistake.