Retail investor: I bought a great company two months ago & it's DOWN. I think I got it wrong.


Me: Did the earnings change? Did the moat crack? Did the story break?
Retail investor: ...no. Honestly the business is doing great.
Me: Then you're not wrong. You're just early. Those are completely different things.
Retail investor: But shouldn't a good buy go up right away?
Me: That's the key thing... the market owes you NOTHING on your timeline. A great company below its fair value can stay stretched down for months, even a year+... then snap back all at once.
Retail investor: So the drop isn't bad?
Me: The earnings & fundamental value is what matters. The price is just the mood. If the story's intact & it's cheaper... I'm not selling, I'm selling MORE puts & allocating more if my ratios allow it.
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