What Did We Learn?

Time in the market beats timing the market. My family and I started this investing journey in February 2021. With the bleak outlook from the Pandemic, to the incredibly high inflation that has not been felt since the 80’s, we were constantly looking at numbers in the red.

That journey was tough. It’s incredibly hard to throw money at the wall and see no end in sight. Good news days, the market goes red. Bad news days, even deeper in the red. All the while, people are selling their shares, but to who? That’s right, who is buying those shares that everyone else is selling?

My family and I, that’s who! Through all of the books, through all of the research, one thing I read over and over again from some of the smartest people on Wall Street. “Time in the market beats timing the market.” And wow, does that ring true. You could have listened to Warren Buffett, “Be fearful when others are greedy. Be Greedy when others are fearful.”

During these down times with high interest, high inflation, people spending less, staying in more, the financial future looked bleak. Especially when new investors or “retail” investors were just getting in. Never invest with money you need for bills. That’s a rule, because when the market crashes or goes through a bear market, or inflation goes up, you’re going to need to take that money out. Removing you from an excellent position for the future. If you could hold on, keep those shares, don’t sell, and ride the wave, you could come out with greener grasses.

You don’t lose until you sell. You own the shares, the price may have dropped, but you still own the equity. You own businesses, and if you believe in those businesses, well, buy more. Shrink your average share price down, so that when the next bull market takes effect, you can be launched “To the moon!”

Through everything, we have bought through the red, bought more of the companies we use and love, and looked at the data. That the market always comes back, and gains much more. I don’t know how long the next bull market will last, I don’t know what the next event to send us lower is, but I know I have made strides in the past few months, and seeing green is a lot better than seeing red.

I hope you did well on this wild ride of the market. I hope you continue to do well! Due diligence, make sure these companies you own have a future during hard times. Also, the gains in dividends was a nice treat as well!

Keep building those portfolios!