What Would You Tell Your Younger Investor Self?

There’s a question I’ve always loved: What would you tell your younger self in your 20s that you know now?

Usually, the answer is comforting. Worry less. Trust the process. Everything will work out. But sometimes the question can also reveal an investing lesson that changes everything.

Back in 1998, I got lucky and picked one of the great leaders of that era, Qualcomm. I held it through a gain of over 600% and thought, it can’t possibly go much higher. So I sold.  What happened next? By the year 2000, it had climbed roughly 1,800% from where it started.

So what would I tell my younger self now?

Hold on longer.  Allocate a larger amount to the winner.

Don’t assume you know how high true leadership can run. Don’t confuse a big gain with the end of the story. Let the strongest trends breathe until the evidence says the season has changed.

I believe we may be in one of those moments again today. A time when generational wealth can be created if you are positioned in the right sectors, with the right concentration, and with a disciplined plan for when to eventually step aside.

Many people say, “I’m in the index, I’ll catch the move.” And yes, you likely will participate. But participation and outperformance are two different games. During that same legendary run, the Nasdaq gained about 185%. Strong returns, no doubt. But nowhere near what leadership stocks delivered.

If you’d like help managing part or all of your portfolio, reach out for a free consultation.  Or, if you’d rather learn strategies to build and leverage your own investing skills, I also offer strategy coaching consultations.

The question remains: Which gain would you rather have?