The stock market is going down and to that I yell “It’s about time!”.
We are investors and we want to buy stocks of good companies at discounts to their intrinsic values. Those discounts had disappeared over the last 18 months or so. Consequently, we have not bought many new stocks and we have sold a few that reached their “Sell Above” prices.
But we have cash to invest. Some of our newer clients have a lot of cash to still invest. And if you are on the fence about coming aboard, get that account open now so we can buy stocks of good companies down, so we can go up a lot together.
Remember, when we are accumulating stocks we welcome these selloffs because that’s the way we make exploding returns. The U.S. stock market is in a permanent uptrend interrupted by temporary declines.
After yesterday’s sell-off, the ValueAligned Portfolio is still up +4.0% for the year and the portfolio itself has a 20% cash position. The Hedge Fund (Value Aligned Fund) is up +1.5%. Meanwhile, the S&P500 index is now down on the year and the other indices are much worse.
So ignore the news. Business news needs to scare you. Ignore the scary stock market headlines. Embrace the decline. That’s how we make the most money! We like these temporary interruptions of the permanent uptrend.
Enjoy the rest of the summer and don’t worry about your stocks – we do that for you.
David “Berk” Berkowitz
Founder and Chief Investment Officer, ValueAligned® Partners