I remember seeing clips where Buffet has given advice bout buying a stock as if he is buying the whole company. Clearly for him, this is a realistic scenario but not for almost everyone else – certainly those watching his comments for 'tips'.
Well my journey has come full circle in the past week with TSM (Taiwan Semiconductor). This was 1st on my radar earlier this year and some very quick research told me they were big, made 50% of global semiconductors and had been hit by the supply chain issues affecting much of the Asian market.
I decided I would buy in, but would be committed and go in for the long term and generally start focussing on fewer stocks. I 1st purchased on 2nd March at $108 and steadily increased my position most months. The result was, that despite the falling market and my initial holding being savaged, I was able to reduce my average price to $80.
Last week Warren Buffet bought $4 billion worth of shares and my position is now in positive territory.
I now realise how stupid it has been to buy in smaller positions stocks without being fully committed to a holding and to keep buying it. Toe dipping is fine, but the opportunity cost is that it can tie up a chunk of funds and not allow you to commit to the bets you feel you should commit to.
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