So What's Our Plan?

So What's Our Plan?

Happy St. Patrick’s Day from the MyWallSt team here in Dublin, Ireland.

Unfortunately, none of us can go out and enjoy a celebratory pint of Guinness today as we’re all working from home. Due to the worsening coronavirus outbreak, Ireland has implemented comprehensive social distancing measures which have seen companies encouraging their employees to work from home where possible and most pubs/nightclubs effectively closed since Sunday night.

As one Twitter commentator put it, you know it's getting bad when Ireland closes its pubs.

Let’s not get bogged down in the intricacies of coronavirus, though. As we’ve said before, none of us are microbiologists or experts in infectious disease, so we’re happy to take the authorities’ advice and just wait it out.

What we are, however, is investors, and that’s not such an easy thing to be at the minute.

I was speaking to my colleague Luke recently (who many of you already know from customer support) when he mentioned that he had received a lot of questions from community members asking us what we were planning to do now that the market had turned bearish.

My instinctive response was “nothing”. We’re long-term, buy-and-hold investors here at MyWallSt, a point that our veteran community members will know well because we hammer it home quite frequently. We also knew that a downturn was coming because it always does, eventually.

But I’m also aware that, at times like this, a trite response like “nothing” might not cut the mustard. It’s a scary time to be an investor when the Dow Jones is hemorrhaging points daily. Companies in our shortlist are regularly shedding as much 20% in a couple of hours for no good reason. Has the world gone mad? Is this the collapse of the capital markets as we know it?

 

Of course it’s not, but it can feel like it is in the heat of the moment.

So I’ve now updated my answer to “nothing new”. What this means is that the MyWallSt analyst team will maintain the core investing philosophy we always have — find great companies and invest in them for the long term.

Yesterday, we added Spotify to our market-beating shortlist. This is a company whose stock will certainly be more prone to the rises and falls of the current market. But it is a great company and that’s why we’re adding it to our shortlist.

A month ago, we added Pinterest — a stock that’s down close to 50% since. Was this disappointing? Of course. Do we still think Pinterest deserves a place on our shortlist as a great long-term investment? Absolutely.

For the past eleven years, various financial outlets would regularly calculate how much you could have made if you had invested in Amazon or Facebook or Netflix at the bottom of the crash in 2008. These same outlets are now sending you dozens of pushes every day telling you how doomed we all are. It’s very possible that we’re in the midst of the new version of the 2008 crash and, in 5 or 10 years’ time, people will wish they had the guts to put their money down now.

It’s also very possible that we’re in for another few weeks or months of volatility. What we’re certain of is the fact that we’ll still be here, picking great stocks and keeping you informed.

Stay safe, wash your hands, and try to enjoy the day wherever you are. I’m off to find some cans of Guinness.

Sláinte.

JamesJames

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