Even
experienced investors struggle in bear markets. That’s why it is of paramount
importance to do everything humanly possible in a bull market to prepare for the
next bear market:
- Improve processes
and procedures. We will always get lax in a bull market and tighthen strings in
a bear market - This needs to be inverted. Don't buy anything which you won't
hold in a bear market
- Train up your
team.
- Stick to your
knitting.
- Avoid portfolio
leverage.
- Maintain sell
discipline - Noncore suddenly becomes core in bull market and we try and extend
the sell decision to take the last puff. Like the cinderella night, chariots
turn into pumpkins
- Develop a loyal and
supportive clientele - Continuous communication during bull market is v critical
for retention during bear market
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