IFB194: Thoughts on Heavy Portfolio Concentration

Welcome to the Investing for Beginners podcast. In today’s show we discuss:

  • Thoughts on Palantir and heavy portfolio concentrations
  • How dollar-cost averaging can help you when prices rise
  • What to do as you approach the 15 to 20 stocks in your portfolio, where to look for other ideas, or reinvesting in your portfolio.

For more insight like this into investing and stock selection for beginners, visit stockmarketpdf.com


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Announcer (00:02):

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Dave (00:32):

All right, folks, Welcome to Investing for Beginners podcast. We have episode 194 tonight. We’re going to go back to listener questions. We got some great ones through the last few weeks when we’ve been doing some really good interviews. Hopefully, you guys have enjoyed those over the last few weeks, but we’re going to answer some listener questions tonight. So I am going to go ahead and read the first question and answer this one because it kind of fits into my wheelhouse, something that I bought recently. So it’s a, it’s a question from a will. He’s from the UK, and he’s a big fan of the podcast. He’s been listening avidly, and he started investing late last year. He says I’ve started building my portfolio with some strong companies paying dividends that I’ve been dripping back into to buy more. And he has a large amount invested in ETFs that are also doing well for him.

Dave (01:19):

He also has invested in a few specs and growth stocks, Palantir, which is what we’re going to focus on here. So he says, he says, I like the look of it. I was looking to make a 10% ROI per year and was willing to have a way to doing that. However, I’ve hit a snag. My top allocation right now is currently Palantir, which is the ticker symbol, P L T R, for those following along. And he did his due diligence following the advice from books, podcasts, and I believe it is a strong company with high potential for the future. Unfortunately, I got a bit too emotional and have initially bought in around $18 and is averaged up around $26. The stock has been very barest recently, and I’m now sitting at roughly about a 700-pound loss when he originally invested about 200 shares. I know we have time on my side as I planned to hold this for five to 10 years.

Dave (02:05):

However, this obviously will affect my aspirations of a 10% yearly ROI if it takes a while to come back. I appreciate, I only make a loss when I sell, and I’ve been buying the dip with Palantir’s. However, I am concerned with continuing to buy the dip, and it becomes a larger chunk of my portfolio is already a massive skew in my overall return. Should I continue buying Wells in the current dip, hold out and bring up my other companies so that the volatility within Palantir has less of an effect overall, or bite the bullet and sell off some of my stock to help reduce my volatility. Overall, I am bullish on Pelletier. Any thoughts or opinions you guys have could be greatly appreciated; keep up the strong work kind regards will. All right. So I’m going to go ahead and take a stab at this first because of the shock of shocks to some people out there.

Dave (02:53):

I actually bought some Palantir, so I bought five whole shares for a little over a hundred dollars for investment. It was just kind of for giggles, but I did do some research on the company. I did read through the 10 Ks. I also read through some of the latest quarterly reports as well as the [inaudible]. So the company just went public about a year. No, not even a year ago. I believe it was sometime last winter. And so it’s a new company in the market. I know the company has actually been around for about ten years or so, and their focus is on AI; and in particular, their largest market is with the United States government, and they do a wide range of things working from the military to central intelligence to other aspects they’ve recently started working more with more commercial customers and the applications of their software and their platform are beyond staggering, and their ability to use that platform to create all kinds of data streams and analysis of, of different data is it’s staggering.

Dave (04:02):

They had an investor preview, I guess, of their, of their platform of about a week ago or so. And I watched it online on YouTube, and it was ridiculous. The capabilities of this thing are it’s beyond, but the reason why I bought it was because I was looking to kind of, I guess, dabble a little bit in a space that I wasn’t super familiar with and super comfortable with. And I wanted to expand my horizons kind of a little bit. So one of the things that I’ve been reading about a lot lately was a hundred bakers. And not that I think that this company is going to be a hundred bagger, but some of the aspects about the company I think could be potential and kind of like, will I have a long time horizon on this? So this is something I just bought and kind of, I’m going to set it, forget it.

Dave (04:52):

So all the things that Will’s doing or not, it was never my intention with buying the company. The company has a lot of, a lot of great prospects. The revenue growth has been really, really good. Since it’s gone private, or I’m sorry, since it’s gone public and the company has done well, it’s still losing money, and it’s not paying a dividend. So this is definitely not in Andrew’s wheelhouse, but it is something that I think has the potential at some point to be worth something. Now, for me, it’s not a company that I would be willing to put a large stake of my portfolio is like, will, has, he obviously has far more conviction about this company than I do. I think it’s something that could potentially be a great benefit, not only to me but also to investors as well as a great source of, I guess, a different kind of technology, if you will, because artificial intelligence is, is kind of beyond most of the stuff that I’ve ever worked with.

Dave (05:51):

And one of the things that just to kind of give you a, I guess, a quickie idea of what kinds of things it could do. So, for example, with the military, they have fighter planes, which are very complicated, lots of moving parts, lots of technology, and maintaining these vehicles or these vehicles, these weapons are complicated. And by using something like the platform that Palantir offers, they can’t predict when different parts of the plane are going to need maintenance and upkeep, and then they can schedule it and get it done before something starts to happen or for horror, something goes wrong with the plane, and it can keep track of all the different data points that are involved with, with the planes and everything. And it’s just, it’s so fascinating, but anyway, all that to say, so I guess my answer for will on this kind of company, it sounds to me based on what you see in the email, that you’re very bearish on the com or bullish on the company.

Dave (06:53):

You think it has long-term growth, and it has a long-term possibility of being a great investment. And I would probably agree, but I guess one of the things that I guess you have to answer for yourself is how much of this volatility can use. Can you handle it? Because as somebody who has owned a very small bit of the company over the last, I guess, month or so, it is very volatile. You will see it go up 5%, one day down, 6% the next day, then back up 7% the next day, and then down 4% the following day. So over the course of the week, you’re going to see pretty well gyrations. And it may only be up a quarter of a percent for the week by the end of the week. So it’s, it’s a lot of, it’s a lot of volatility to stomach.

Dave (07:39):

And if it’s really driving you that crazy, then I would probably start to trim some of the exposure. I probably, I would, I guess in my, if I were in your shoes, I would not buy anymore. If it’s really gotten to that big of a portion of your portfolio, I will start looking at other things to try to balance out the exposure that you have with the company and your portfolio. And it will also help reduce some of the relativity. And as far as the ten-year annual returns of 10%, you may not; you’re not going to get a straight 10% every single year. You may have one year that may only be 6%, but the next year, maybe 15%, as long as it’s averaging 10% over that time period, that’s really the most important thing as opposed to trying to get an even 10% every single year, because there’s going to be some years, you just aren’t, and there’s going to be odd years where you will find in spades. So it’s more about the long-term of the returns as opposed to worrying about year to year to year. It’s thinking about it more of a long-term play as opposed to a short-term play. So I guess that’s kind of my thoughts on Will’s question and Palantir and kind of how to handle the volatility. I would be curious to hear what Andrew has to say about it.

New Speaker (08:53):

Sure. So I also agree with you about the 10% thing. You know, the market doesn’t care what price you bought a company. I also don’t care what your goals are for your investments. And so, you know, over the long-term, it’s going to attract the economy, but the economy goes up and down in cycles. And so well the stock market. And so will your investments. So, you know, good to have a goal. I have a goal, you know, 11% over four years, but I’m not getting too bummed out if I’m lagging or when I was way overachieving. I wasn’t too excited either because I know how fickle it can be. So now, in the case of this Palantir situation, I have not researched the company. So I’m not going to make any recommendations about or any judgments about the company itself. I’ll just say, based on this situation, talking about having about 200 shares, and you mentioned in your email how you’re investing about 500 pounds a month.

Andrew (09:55):

So, you know, doing some back of the napkin math here, you’re talking about almost a year’s worth of monthly deposits for you into one company. That’s, that’s definitely a lot. So even if you’ve never bought into it and you just completely just bought other stocks for the rest of your investment career, until you retired, you would still have like a pretty, pretty significant size, assuming it didn’t even grow. So you’re definitely at a very large size here. And that brings up several kinds of problems. I think with that. And you got to be careful and like, you have to think of it as a balancing act and, and try not to move in one direction or swing in the other either because I think this is great, a great lesson to see how it is when, when you start investing serious money into the stock market.

Andrew (10:52):

As you know, this is how even though you’re bullish, you get all these doubts that come up and, and you start, it’s not that they’re second-guessing in this email, but there’s these, these thoughts and these concerns, these stresses that come up, and it’s only natural when you, when you buy stocks and, and particularly when the makeup larger parts of your portfolio. So even if you have the knowledge that, Hey, you know, I’m going to hold this for a very long time. It is admittedly frustrating to see your returns get skewed from one big position. And I think that’s why I mentioned this in the email, maybe like a week or two ago. But if you think about all the, all the investors who really made huge, super huge bets, you know, Warren Buffett, Guy Spear, Mohnish to provide these guys are very, very concentrated.

Andrew (11:45):

They’ll; they’ll put huge parts of their portfolio into single stocks. They, you know, this how we don’t really hear about the investors who do that and fail. So you have a bit of survivorship bias going along. And so when we hear about these successful investors who put these big chips on the table, we, we only hear about the successes because that’s the only thing that people want to talk about. But the reality, too, is that there are people who made huge bets and then either severely underperformed the market and, or lost a ton of money. And of course, you don’t hear about them because they just kind of disappear into, into, you know, into the abyss where, where we don’t, we don’t hear about that kind of performance. And so I think as every as average investors, and as, as somebody who’s been investing for almost a decade, I still have to humble myself and catch myself when I want to put too many chips on one company or one idea because the reality is is that we get, you get very confident on the company.

Andrew (12:50):

And just because you’re, you’ve done all the research in the world; it doesn’t make success a guarantee. And, you know, if you’ve seen some of the best businesses of all time, eventually stumble, and you know, the world changes, market changes, customers change, all those things can happen. And so there’s a lot of problems that I see with having huge concentrations like this. Maybe you want to term some of it, maybe you don’t, I don’t know, but I would definitely look at not adding any more, even if it, you know, let’s say it crashed 50% tomorrow, and you’re looking at it as a great opportunity to add more. I don’t think that that’s something that would be particularly wise, and I would look to try to get to even diversification as quickly as I could. And if you can get out of there with a small profit to further diversify our portfolio, that’s probably a good move too.

Andrew (13:43):

But you know, on the flip side, Will’s very, very young has a long time horizon. And so if you can kind of chalk, if, if, you know, again, if there’s a lot of volatility to come and if you end up losing a ton of money on it, if you talk it up as a learning experience and kind of ignore that portion of your portfolio I don’t see any reason with, with sticking with it, if this is really that company that you’re so confident in if that makes sense, you know like I haven’t, I haven’t done the research on Palantir. Like Dave says, not my wheelhouse. It doesn’t check any of my boxes, but if it’s, if it’s something you have that much conviction with, then it might be worth staying on. But at the same time, you have to be careful that you’re not becoming overconfident or being too, you know, having a bad perception on the, on, on what your true circle of competence is. And if you understand the situation or not, yeah.

Dave (14:41):

That’s, that’s great advice, and that’s, those are really good thoughts. And what does that, what does that saying that the market can be irrational longer than you can be WIC liquid or something along those lines? Yeah. It can be irrational longer than you can stay solvent. Yeah, exactly. So even though you may be right, it doesn’t necessarily mean that the market will agree with you, and it may take a little while for it to agree with you too. So I would definitely listen to Andrew that’s, that’s some great advice.

Announcer (15:12):

What’s the best way to get started in the market—download Andrews ebook for free at stockmarketpdf.com.

Dave (15:21):

I am going on the next question I have hello, Andrew and Dave. I’m a 17-year-old in the United States, and I found your podcast about four months ago, and I love it. It is such great information for someone like me, who is trying to soak up as much information as possible. I started listening to your podcast from the very, very beginning, and I’m I am at episode 81 and the time of writing. So I don’t know if you have talked about my questions yet. This brings me to my questions. What happens to a stock of a company when they got bought out? Do you get paid out a set price? Do the stocks you own get rolled into this buyer stock, thanks for all that you and Dave do. It’s been a big help in making sure that I started my investing journey when I turned 18 years old on the right foot. Thanks for your time, Sam. Andrew, what are your thoughts on Sam’s great question.

Andrew (16:10):

So the answer is yes, it depends on what the deal was. So when one company buys another, they can make a deal to say, Hey, you know, we’re going to pay, let’s say, $3 billion for your company. And so, you know, you split that up by however many shares. There is so maybe everybody; every shareholder gets like $50 a share. And so, you know, it goes through a process where basically that gets announced, and then there’s no way you can time it almost immediately. The price will shoot up because there’s, there are people on wall street who are watching this stuff. And so an example of this was a company we bought for the leather, Tiffany. So Tiffany was trading. I think it was around 80 or 90. I think we got in around 80 or 90; maybe 70 ish doesn’t matter.

Andrew (17:04):

And so there were rumors that they were going to get acquired. And so once those rumors came up, the stock shot up to 120, and then there was another announcement, more of an official announcement that they got that they’re going to get acquired. And that happened at like 130. And so the stock will shoot up, and it will get really close to what the deal is. But there’ll be a little bit of Slack too, you know, like you won’t like, like, in this situation, I can’t remember the exact dollar amount, but let’s say the deal is like one 30, two, maybe the stock trades at one 31 or one 30 because there’s still risks that the deal falls through. And so, you know, lo and behold, with COVID and everything there, there was all of a sudden the big risks that the deal wouldn’t go through anymore, even though both companies had agreed to it.

Andrew (17:55):

And so what ended up happening was the stock cratered back down. And then, when it became clear that they were still going to do a deal, it shot back up close to the new deal price. And so in that time period where you’re waiting for basically for the deal to close, and it needs to go through antitrust and the government and everything, and it needs to get approvals and needs to get approved by shareholders. And so, in that time, you’ll just have the stock. That’s just not really moving. And then when the, when the deal finally closes, you’ll get your cash, and it’ll get sent to your account. So I think in general, unless it’s a company you really like, I like the idea of just selling it once the price gets really close to what the final deal price will be. The other option too, when one company buys another, are you receiving shares of the acquiring company.

Andrew (18:55):

So this also happened to stock in the leather also last years. So we have a company called parsley energy, got crushed by COVID. And another company in the energy sector was able to pick up, pick up parsley energy, very cheap. That was frustrating, but you know, what can you do? This is why diversification’s important, but what they did instead of buying cash, paying cash for this, for this acquisition, they offered shares. And so you might get, you could get two shares of, of the company that’s acquiring you, or maybe you get like 0.4 shares. In my case, I think I got somewhere. It was, it was a decimal place, number of shares, fractional shares. And so that’s what you get in exchange for however many shares you have. So if you have ten shares, say, they’re giving you 0.4 shares, you get four shares of the new company. And so those are the two possibilities between what’s going to happen to your, you know, your ownership when the company that you own gets purchased.

Dave (20:05):

And is there a situation, well, I guess maybe not the situation, but it’s a little bit similar to spinoffs, correct to where one company sells or splits off a portion of their company? And then they offer you shares Net new company. Is that, is that how I’m, is that how I remember it?

Andrew (20:28):

I, yeah, there is the possibility of you getting the option to Sometimes. So I guess, you know, both of the situations I was in, it was either you’re getting the cash, or you’re getting the shares, but they also do have the ones where you get the option.

Dave (20:48):

There is a style of investing too, where you kind of arbitrage the, the two where you buy the company before it’s sold. And then when the price goes up, you sell out of it and kind of make the profit between the two kinds of thing. Yeah. That one’s very risky. It’s like trying to pick up pennies in front of a steamroller because nine out of 10 acquisitions go through the one that doesn’t; we’ll create their 20, 30, 40%, whatever it is. Yeah. It’s definitely not something that I am; I am going to be doing its way out of my wheelhouse for sure. All right. Let’s move on to the next question I have. Hello. I am a university student from Canada, a subscriber to your newsletter, and I’m a huge fan of your podcast through listening to your podcast and reading your articles on your website.

Dave (21:41):

I have found that dollar-cost averaging is the method you use to keep your portfolio diverse. I’m using the same amount as you, $150 a month to invest with. I just opened the first account that I can invest through. And once I complete my research and stocks that I’ve been working on with the help of your seven-step ebook, I am going to buy my first stock. The question I have is with dollar-cost averaging. Once you reach the comfortable amount of stocks in your portfolio, 15 to 20, what do you do with the next $150? For example, if you have 20 stocks in my portfolio, each roughly around $150 in value, and the next month comes, and I put in another $150, where should I put it assuming a best-case scenario where all my stocks have increased in price so that none are undervalued anymore.

Dave (22:27):

Do I reinvest in stocks that I want to hold forever? Do I buy new stocks without money? Any site, any insight into this would be very much appreciated. Thank you, Michael. Andrew, what are your thoughts on Michael? Really good question. Yeah, it’s, it’s, it’s, it’s a really good one. That’s very tough to answer because the answer that’s right for you could be different depending on where you are in the journey. So for me, you know, I’m looking at my portfolio every single month when I am looking for new companies to buy. And so you know, you got to compare what you have now versus what’s out there. And just because, so I’m, I look at a stock in my portfolio, let’s say I bought it. And it was very undervalued. I was able to pick it up, and we’re up like 10% or 20% now, you know, you might be feeling because you bought it, and it’s up 20%. It doesn’t feel undervalued to you because you have that 20% gain, but it could very well still be undervalued. And so, you know, if you want to take a more rational approach to it, you should be reevaluating its undervaluation and its attractiveness and comparing

Andrew (23:46):

That to whatever you’re adding in your portfolio in each upcoming month. And so you basically want to position yourself in the stocks that are the most attractive at any given time. And Dave, you, you brought up this quote very recently, and I loved it. You talk about how Charlie Munger says; if you want to fish, you got to go where the fish are. And you know, in the context of you gotta, you have to find, you have to go to the stocks that are undervalued, and you gotta, you have a fish there and really try to invest in the good deals. And so when it comes to building your portfolio, you know, you might have 20 stocks, and I would not say, buy one of your stocks in your portfolio so that you stay within 15 to 20. I think that’s silly. 15 to 20 is a good guideline.

Andrew (24:41):

It’s a good framework. And it’s, it’s, it’s, it’s there too, to kind of say like, maybe you don’t want to have a hundred and then maybe you don’t want to have like five, right? And so I think it’s good to have that, that framework and that guideline, but as you’re, as you’re at that part now where you’re like, okay, I’m, I’m pretty comfortably diversified. Then you’re in the mindset of, let me compare this with what I have now. What’s available out there, and just try to put your money in where it’s most attractive. Now the flip side of that, which kind of goes back to the first question we answered with Palantir, is, you know if you have one stock that’s taken up this huge portion of your portfolio, it’s like 20 or 25% of your portfolio. Then even though it is the most undervalued stock, maybe that’s not the best one to be adding to because you want to be diversified. And that means to diversify, not only with the number of stocks but also with how big of their over your portfolio they are, right. If you have $10,000 but seven thousand in one stock, that’s not really diversified.

New Speaker (25:50):

Yeah, that’s right. And I think along the same idea is when you’re investing every month, sometimes the company that you bought the month before is still your best Idea. And As Andrew was saying, if it’s up 10%, then you still need to evaluate it and look and see if it still has potential for more growth. And most people associate dollar-cost averaging with going down. So let’s say that the company starts out at just to pick a number $50 and the next month it’s a 40 and you buy it. Now your dollar cost average drops. So it’s not your cost basis or the

Dave (26:38):

You pay for it is not $50. Now, now it’s 45. You bought them at 50 And 40. You add those to the other, and you divide it. And so that that’s, that’s kind of how that works, but you can also do the same thing if the company is going up. So let’s say that you buy it at $50 and then it goes up to 60 and now you buy it at 60. And now your dollar cost average is $55 because it’s between the two. And let’s say that it goes up to 70. So you’re still making money, and you’re still dark cost averaging into it. And every time it goes up, then it reduces it. You’re gaining that much more because you have that compounding impact on how the thing is working. And a lot of people, most of the time, and I’ve, I’ve fallen into this trap myself, is that I will get only dollar cost average when the company is going down.

Dave (27:30):

But you also benefit from doing it when the company is going up, especially if it’s a really good company. And, you know, if you get a, if you get a smoking deal on a company, like, I don’t know Microsoft, and you get a chance to buy it several times before it reaches a fair value that you think, or you think it’s maybe too expensive to keep buying at that point, then you’ve, you’ve increased your ownership percentage of the company at that time, which will help the, your overall returns over a long period of time if the company continues to perform well. So it’s not just about buying companies when they’re super, super cheap and kind of what Andrew was referring to is something called anchoring. And basically, what you’re doing when you’re doing that is you’re anchoring on the low price. And even though it’s up 20%, you’re still thinking, you know, it’s now it’s expensive because I bought it at $30 a share as opposed to 45, but 45 may still be, it still may be worth 60 bucks a share.

Dave (28:33):

And so if you’re buying it now at 35 or 40, instead of 30, you’re still buying it at a discount to where it was before. And it’s still in those accumulated shares, especially if it’s paying a dividend is all more power for you in the long run as the company continues to perform. So those are, I guess, some ideas you can think about when you’re looking at trying to build your portfolio. And, the idea of the 15 or 20 is, is a great guideline. And it’s hopefully there to help you achieve some sort of diversification. Now, if you have 15 or 20 financials as I would probably tend to do, that’s probably not the best idea, but if you get up to 15 or 20 and you have kind of a wide range of different companies in different industries or sectors, then you can start playing around with other things. But I think what Andrew was saying is, is, is a great idea to think about it. And those are the good ways to think about kind of building your portfolio. But every month that you get to invest, the first thing I always do is

Dave (29:42):

Look at what I already own and see if there are other opportunities to get into those companies because I’ve already done all the work I’ve already spent all this time investigating these companies. These are the ones I know the best, and I have the best ideas and best reference points and best knowledge about, and it would make sense for me to beef up those positions because I know them. And then, you know, going out to try to find other positions, sometimes it could be hard, you know, right now trying to find great companies that are at a fair price or a good price is tough because the market is up so much and everything, the tide has risen so much since the COVID pandemic started, that it’s really hard to find great companies that are fair price right now. I’m not saying they’re not out there, but it’s a challenge.

Dave (30:33):

And so when you’re looking at putting more money into your portfolio, we’ll go to, I already own and see if you’ve got opportunities there, because that again is a great place to fish because you already know where the fish are biting, cause you already got them. So that’s, I guess that’s one of my thoughts.

Andrew (30:51):

How’s a very good one. Something about it. That was so insightful. I was like, ding, I am going to play devil’s advocate just for a second because I’ve made this mistake personally, too. So I love the idea of dollar-cost averaging as it’s going up or down. I love the idea of adding more to your positions. I would caution about doing it in months consecutively. So I did it with the NWL, and I did it with AEO. And WL turned out really bad. A, you know, it turned out pretty good, but that doesn’t make me right or wrong.

Andrew (31:27):

Right. And so I think while we need to be careful about getting too overconfident in, in stocks and, and the companies and the research we’ve done I think it’s easy to be lazy about you know, Oh, I looked at this month, maybe, you know, you get, you just get these like Rose Rose, tinted glasses. And so I think there’s a lot of value with stock selection, which I don’t hear talked about much, but I’ve found it personally. And in my investing experience, to be very helpful is to get excited about the company by the company. And then just let some time pass because after that honeymoon phase kind of goes away, then you can reapproach the company and re internalizing the things about that company that, that you remember, and the reasons why you bought it, but you can also approach it with a little bit more objectivity. So you’re not so emotional. And that’s where you can maybe see if you were, in fact, correct on your research or not. And if you were correct with where you were estimating, the value of the stock was or not. And so that’s another idea for trying to, again, walk that balancing act between

Andrew (32:40):

Being confident in your positions with also being humble enough to know that the market’s tough and investing is tough, and business can be tough. And so we want to be humble, but we also want to be confident that is such good insight.

Dave (32:55):

And I agree with you. And I think that is something that I see. I have never actually experienced that. And so that’s something where I can, I can, I can take from Andrew’s experience, and I can learn from them the things that he’s experienced and try to process that because that, that personally is not something I’ve experienced because the only company that I’ve ever done that with was with Berkshire to me. And I bought that consecutive month, and it turned out well for me, but I haven’t had that experience that Andrew has. And so he’s learned from that experience, and it’s, it’s great that he’s passing that along to all of us because that’s something that I can learn, learn from.

Dave (33:35):

And one of the things that I don’t think gets talked about enough about in investing is how much of the mental aspect of the game is. And we’ve touched on that several times today in the questions that we’ve answered. And the mental aspect of investing is such an important idea to think about it, you know like Andrew was saying the Rose-tinted glasses and having the overconfidence. Those are things that we all fall into. And I’m not saying that those are good or bad. It’s just; it’s really helpful to be mindful of those ideas and mindful of those things and ask yourself those kinds of questions. Am I getting cocky about this? Do I think I really really know my stuff about this particular company, and you may, and you may not? And sometimes, we may overestimate how much we really know about a particular company or position.

Dave (34:31):

And sometimes they think it’s a really good idea to kind of check ourselves or, in other sync circumstances, have other people help check you so that you have a kind of an accountability buddy if you will. And that’s one of the things that I value about talking about all this with Andrew and with you guys is that it helps me stay grounded in any ideas that I may come up with or to help me stay humble with things because Lord knows it’s, it’s, it’s hard to be humble, so I’m just joking. But I think that it’s, that’s a great idea. I think that’s a really, really good idea. All right. So before we sign out, we got a little thank you to say. So we got this really cool message from a listener recently, and I wanted to share that with you.

Dave (35:17):

Hi, this is Dawson, and I am a listener to your podcast. I am emailing you to let you know that I like your podcast a lot. The content is very informative and easy to understand. I am a kid and listened to your podcast. I listened to it on my road trip. Thank you for making the podcast. Thanks. Well, I just wanted to give Dawson a shout-out and thank him for taking the time to send us that very cool email. And we really, really appreciate you taking the time to listen to us. And we’re glad that you’re enjoying it and that you’re learning a lot because you’re just setting the groundwork for a lot of great things for yourself in the future. So kudos to you.

Andrew (35:55):

Yeah. Dawson, thanks for making my day. That was awesome. Yeah, it was; it really did make our day. So thank you very much for that, Dawson. We really appreciate it.

Dave (36:04):

All right. So without any further ado, I’m going to go ahead and sign this off. You guys go out there and invest with a margin of safety emphasis on safety. Have a great week, and we’ll talk to you all next week.

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