Days like today can be difficult for investors who are watching their months of capital gains disappear in a sea of red. So, here’s a tip. Stop looking at your portfolio.
Look At Your Watchlist
A large part of investing, in fact, a very large part, is psychology. It’s one thing to understand valuations and the benefits of investing for the long term, but a whole other skill set is required to put that knowledge into practice.
One of the most dangerous things to do on a day like today when the market is down is to start looking at your portfolio. My portfolio is down today, I already know this. So, why would I check? Unless you’ve invested solely in gold shares, your portfolio is probably down too.
But, if you’ve invested in high-quality businesses, then chances are you don’t need to worry about today’s share price movement. The underlying fundamentals of the business you invested in likely haven’t changed.
That’s why, instead of looking at my portfolio today, I’ve been looking at my watchlist. Today’s the day to be watching, and maybe buying, those high-quality businesses you’ve had on your radar for some time.
Perhaps businesses like Pushpay Holdings Ltd (ASX: PPH), Nearmap Ltd (ASX: NEA), Altium Ltd (ASX: ALU) and Appen Ltd (ASX: APX). This is the perfect day to be looking at high-growth businesses with competitive advantages.
You can find more examples in this article.
The Bottom Line
Ask yourself this: have the underlying fundamentals of my businesses changed? Have the growth prospects changed? If you’ve invested in great businesses to begin with, the answer will likely be no.
So, stop looking and worrying about the short-term movements of your portfolio, and check out the growth businesses in the free report below instead.
Disclosure: At the time of writing, Max does not have a financial interest in any of the companies mentioned.