It’s hard to admit sometimes…but it’s us.
We can be our own worst enemy. Sabotaging ourselves.
It’s not what the price of Amazon, JPMorgan, or Costco stock are doing on any particular day, week, or month that will impact your investment success.
It’s what you will do or do not do that will determine your success.
Case in point, Amazon, in many accounts, is one of the most successful businesses in the world, literally changing the way consumers shop.
- The stock has returned over 203,000% since going public, turning a modest $10,000 investment back in 1997 into over $20,300,000 today.
- However, over this same time period there were 5 times that Amazon was down over 50%. This is also ignoring the countless 10% and 20%+ drawdowns.
- As recently as 2022, Amazon lost more than 56% of its value, and investors who sold locked in a substantial loss if they had bought at a recent high.
How do you lose money in a stock that turns $10,000 into $20,300,000? Panic selling is how.
It’s what you will do or not do that will determine if you are successful or not.
Stare fear right in the face and sternly proclaim, “Not today, you will not scare me today.”
-Paul R. Rossi, CFA