MERRY CHRISTMAS, everyone!
Nothing much to update on my side. The market will continue to be volatile until there are some certainty or clarity on Omicron variant. The next thing we need to look into (in terms of macro economy) is the geopolitical tension between China & USA and also the growing concern of USA & Russia.
What I have been worrying previously is now crystallizing - INFLATION hike. The US Federal reserve hinted multiple interest rate hike last Wednesday and impliedly admitting the scary super inflation.
As a long-term investor, I know that my investment return can be higher in a single year and maybe slow or even negative in another year. However, in a long period of time, if I invest in the right company and right method, it is high probability that I will have a reasonable and decent returns. My expectation of investment return has to be reasonable and decent.
In a Letter to the shareholders of Berkshire Hathaway (Year 1985), Warren Buffet wrote:-
“We bought all of our WPC holdings in mid-1973 at a price of not more than one-fourth of the then per-share business value of the enterprise. Calculating the price/value ratio required no unusual insights. Most security analysts, media brokers, and media executives would have estimated WPC’s intrinsic business value at $400 to $500 million just as we did. And its $100 million stock market valuation was published daily for all to see. Our advantage, rather, was attitude: we had learned from Ben Graham that the key to successful investing was the purchase of shares in good businesses when market prices were at a large discount from underlying business values.”
Further, RISK MANAGEMENT is what I have been learning and applying. I like what the author, Peter L. Bernstein, said in his book ‘Against The Gods: The Remarkable Story Of Risk’, which I quote;-
“So we pour in data from the past to fuel the decision-making mechanisms created by our models, be they linear or nonlinear. But therein lies the logician's trap: past data from real life constitute a sequence of events rather than a set of independent observations, which is what the laws of probability demand.[...] It is in those outliers and imperfections that the wildness lurks.”
PORTFOLIO PERFORMANCE
My Portfolio performance is doing good for the month of December 2021. Solely for the month of December 2021, my portfolio performance is up 3.62%. Overall, my portfolio performance currently is up at 27.11% since its inception in May 2020.
Merry Christmas! Stay safe.
MNMLH
24.12.2021
