Edition #5: Shiny Stock Syndrome, Goal Post, Blue Chip, Costco, Outsmarting the Crowd

Oz’s newsletter from Jan 8, 2020

Shiny Stock Syndrome

The stock market went crazy in 2020 after March’s coronavirus dip — and it’s still remaining high. This makes it especially tempting for investors to jump on the next hot stock.

Having experienced this myself, I call this Shiny Stock Syndrome, and write about a counterintuitive (at least to me) way to deal.

Our attention is limited we can only pay attention to so many stocks at one time. Buying new stocks with little research is closer to gambling than investing.

Read Shiny Sock Syndrome here.

The key takeaway is to be as into your current stocks (or investments, or assets…) as you are new ones.

For me, the sobering “self-check” is to ask myself: “Do I find this new investment so compelling that I’m willing to trade my current investment for it?”

Evaluating new investments in relation to my current investments, while it sounds obvious, is going right into my list of…