2020 In The Rearview Mirror, Looking Forward To 2021

Investments deserve our affection or disdain based on their results. Now, as value investors that does not automatically mean share price performance, it means “how has the business performed” as at the end of the day, long term that will drive results.  The danger in both business and people is that some always just keep almost getting there but continue to disappoint you, we have got to learn to let both go as holding on never does any good.  CHK and Breitburn Energy (BBEP) are perfect examples of this.

On the flip side, the stock of a company can collapse but if the business is performing, we hold on. This is like the person in your life who had been wonderful to you but makes a mistake, do we throw them away or look at the sum total of the relationship and see it for what it was, as a temporary set back. IIPR is a perfect example of this. The company has continued to crush it results wise but the stock collapsed from $140 to $45-$50 in March. Did we dump it? Hell no!! They have been performing amazingly and the business results never faltered. So, of course, we tripled our position and are up >300% since March in those buys AND getting over 10% annually in a dividend.

So the main lesson of 2020? For my investing life, it is to more quickly dump those who continue to disappoint and double or triple down on those who don’t. Come to think of it…….that is for my personal life also….

I hope 2021 is the best year ever for everyone.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests ...

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