Don't FOMO. Don't Panic. Stay calm and patient.

Just a reminder of who we are and what we do.

We are long-term value investors at our core. Our goal is simple: own wonderful companies at great prices — less than 50% of intrinsic value, and of course, the lower the better.

As value investors, the most important thing is to understand businesses, understand their moats, evaluate management, and patiently wait — sometimes for a very long time — until Mr. Market offers us a price that gives us a real margin of safety, or be extremely patient waiting for a great business to recover and return to its value.

We use options as a tool, not the goal. We're not using them to speculate on price or bet on direction like other traders do.

We use them to generate cash flow while we wait and to reduce our cost basis on positions we already own - with strong certainty. That's it. They serve our long-term strategy, not the other way around.

Right now, the market is going crazy over AI. Money is pouring into momentum plays. Everyone's posting their 50%, 100%, 200% returns. And if you're sitting here holding value stocks that are flat or down, it's easy to feel like you're doing something wrong.

You're not.

Value investing and momentum trading are fundamentally different strategies. Different time horizons. Different return expectations. Different levels of effort, time commitments, and different lifestyles.

Comparing your value portfolio to someone riding a momentum wave is like comparing a marathon runner's pace at mile 5 to a sprinter's 100-meter dash. They're not playing the same game.

And life is a marathon -- the same as investing.

Don't FOMO into what's hot, unless you know how to do it skillfully. Don't compare your interim returns to someone else's. That comparison will make you abandon your own strategy at the worst possible time.

What truly matters as a value investor, and where you should spend your energy:

Understand companies — use 4M analysis.
Strictly follow our rules and option tools to tranche in (remember the V-shape strategy?). One tranche at a time. Keep your dry powder for a better price.
Be patient. Extremely patient.

When the bubble eventually pops, you will be glad you still have bullets, and that what you're holding are businesses with real value — owned when they were cheap.

Stay patient. Stay disciplined. Stick to one strategy until you see real results.

Btw, sharing one article from Michael Burry on his paid Substack (see attached doc) and one recent interview with Warren Buffett:

Warren Buffett Breaks His Silence on the U.S. Stock Market:

https://www.youtube.com/watch?v=m0qxvtMaKEQ&t=518s

Happy investing,

Wendy

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