No One Wins 'Em All - And That Is Ok

Includes: EPRO
by: Roger Nusbaum

One purpose of my site is to let anyone so inclined to look over my shoulder at the moves I make in the portfolio I manage for separate accounts and the exchange traded fund (RRGR) we sub-advise. When a decision is made to buy or sell something I post about it a day or two later--obviously I don't announce a trade here before I place it for clients.

As I say frequently, an actively managed portfolio is a series of decisions and hopefully more of those decisions will turn out to be correct than not. A byproduct of these posts disclosing trades is that people often point out some risk or other form of drawback to the stock or the trade being discussed. If you write openly you should expect various forms of criticism and after eight years and counting it is not a surprise.

The point here today is not to try to debate any commenter on Seeking Alpha but to point out that in buying or selling something there is a risk of being wrong. In selecting a stock to buy there are pros and cons. Every great stock that has ever existed had or today has negatives. When a decision is made to buy something, then hopefully whatever the analytical process was, found the negatives, the big ones anyway, and took those negatives into account.

However much research goes into picking a stock. It is not likely that every little thing that exists can be found but hopefully the big ones can be. Any investor who routinely gets blindsided probably needs to figure out another way to arrive at their investing decisions. Getting blindsided occasionally might be an occupational hazard for investors. Even the most successful investors can't be correct every single time.