SELL BRK-B.NYSE (Berkshire Hathaway) 20% of portfolio
SELL MYI.L (Murray International IT) 10% of portfolio
(Price at close, Friday 9th 2016).
BRK-B.NYSE up 40% since you sold.
MYI.L down about 15%, but including dividends would be slightly up.
Just wondered if you had a feel for why you got these trades wrong and whether you have changed your strategy?
I think it's always good to revisit investment decisions StepOne, and I think it's also good to recognise peoples aptitudes in making them, and what their record in doing so looks like.
For instance, in this earlier Lemon Fool thread from 2016, Comps was claiming that December 2016 was a very risky time
to be in the market, and every indicator he was looking at
was screaming danger - So I am ringing my 'danger' bell.
I am simply talking about the present danger of suffering from an almighty, investment-career-destroying crash, a risk which is higher than it has been since the year 2000, according to the Shiller PER understanding of overvaluation.
We are already looking now at an overvaluation of the US market which is worse than 2007. Do you remember 2007-2008?
Between 1920 and 1930 a lot of people made money. Then, they lost it, and it took twenty years to recover.
If I was someone that was 100% committed to staying in the market no matter what, I would probably switch any US holdings I have into UK holdings, as the UK market seems less overvalued, given the weak pound and lack of historical records being set. https://www.lemonfool.co.uk/viewtopic.php?f=7&t=1631
I'm not sure if you've taken a look at how the US market has done since December 2016, and compared that to how the UK market has performed since that time?
Here's a couple of interesting charts from the time of those 2016 claims until close of play yesterday -
So we can clearly see that anyone following that idea to switch out of US markets and into UK markets in December 2016 would not only have lost the chance to make DOW gains of 43% over that period (which includes the impact of a global pandemic, let's not forget...), but would also
have suffered from a terrible compounding loss
of 15.5% by moving over to the UK market at that time...
If we look at how the S&P did over the same period, we can see that it did even better than the DOW, and has made gains of over 55% since December 2016, so that would be a potential 71% loss
caused by switching out of the S&P and into the FTSE at the time -
I'm not quite sure that the ideas given at the time of that 'Ring Ring
' thread could have been any more wrong in fact, and I'm happy to say that I was glad I completely ignored it at that time....