[PODCAST] What Makes David Gardner's Rule Breaker Investing So Successful?
It is not in the buying, but in the holding
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Today, we released an hour-long podcast dissecting David Gardner’s Rule Breaker Investing.
For some reason, a lot of you dislike the Motley Fool approach to investing. Which is weird, because it works:
I think it is because the strategy simplifies investing for individuals. It makes people in the industry (even people like us!) less valuable because you realize that anyone can make it work on their own.
Cynics may look at the Motley Fool approach and say it is a spray-and-pray strategy for growth stocks. This is true if you only look at the recommendations. Yes, the Rule Breaker portfolio recommends a lot of stocks to buy. Anyone can constantly pick the hottest growth stocks at the moment.
This isn’t the key to the strategy. It wins because of the “never sell” tactic that opens up the extreme right tail of returns, which is how the portfolio crushes the market. 99.99% of investors don’t take advantage of this.
Gardner has never sold Netflix. It is a 490 bagger for him. He has never sold Mercado Libre. It is a 139 bagger for him.
Amazon and Nvidia returns are even better. In fact, he has held Amazon so long that he is even outlasting Jeff Bezos!
Gardner wants to be early into a bunch of promising stocks. Most will be losers. But he wants to never sell any winners and let them make up for (and more) the losses. Netflix being a 490 bagger makes up for 489 other recommendations that go to zero.
Above all else, this is the key to Gardner’s success and something that anyone can replicate. You don’t need to be a professional to make it work.
Let your winners run. High.
-Brett
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