This is a continuation of my personal reflection on investing in stocks. I recall most recently I talked about patience over frequent short term trading here. Patience is import during power (electricity) outage too: which btw, in St. Louis due to the unpredictable weather, it happens once a while (such as this one in year 2006. And in summer 2021. Both the Jan 2007 and the July 2021 outages lasted multiple days. Also keep thing in perspective, I recall in July 2006 an electrician died when working to restore the electricity.
Today (this morning to be exact) I just noticed 2 stocks in my portfolio. And one is much bigger than the other in terms of portfolio size: 20 to 1. The big one barely went up 1%, the small one went up 10%. If you are curious, the large holding is $KO Cocacola, and the smaller one is $VERX Vertex software inc (tax software).
This reminded me of something Charlie Munger said quite a few times.
Charlie Munger: “And the wise ones bet heavily when the world offers them that opportunity. They bet big when they have the odds. And the rest of the time, they don’t. It’s just that simple.” (reddit self.investing)
Charlie Munger in final CNBC interview: You’ve got to learn how to recognize rare opportunities when they come (he was talking to CNBC Becky Quick on this topic, at about 5 minutes 17 seconds mark)
Charlie said here in a Q&A session with Berkshire Hathaway shareholder meeting too. In this one they talked about various topics of issues.
This is also his “put eggs in a few baskets and watch them carefully” portfolio management philosophy.
One thing I need to add is $KO does has about 3% annual dividend yield, while $VERX doesn’t have a dividend.