When I started Deep Knowledge Investing, I received a lot of questions about the number of ideas subscribers would get. In 2020, there were a ton of them as we played the recovery trade. We bought cruise lines, casinos, banks, and other stocks that had gotten crushed during the Covid lockdowns. The next year we did extremely well in health care and education. Last year was all about being short the market and long energy. More ideas in 2022 would have made it look like we were providing more “value” while “helping” people lose money. At some point, company fundamentals will matter more than the Federal Reserve and we’ll adjust then with more individual stock picks.
The point of the above is Deep Knowledge Investing is not here to look like we’re doing things. We’re here to help you make money. That sometimes requires patience. On that topic, I’m beginning to prepare a longer post on why I disagree with the common view that volatility is the correct measure of risk, and how DKI uses that to make money.
Gary Mishuris runs Silver Ring Value Partners. He’s a friend, a deep thinker, and an excellent writer. Today, he released a great article on exercising boring patience to earn better investing returns. His thoughts on the matter are similar to mine, and I like the way he used his son’s approach to video games as a way to think about how he likes to invest. The article is titled “Unmasking the Secret Villain Destroying Your Investment Profits“. I recommend giving it a read.
