Witnessing the recent and continuing equity market climb to new heights reminds me more and more of the years of 1999 and 2000. For me, those years were consumed by an aggressive buying of equities as I increased my initial capital in the market from a base of $250,000 to $11,500,000, entirely through price increases. I thought it would never end and that I had become the invincible winner of selecting companies that would grow forevermore. What I did not appreciate at that time was my ignorance of what a bear market felt like and what it could, and in my case would, do to my outsized gains. It was a very meaningful education.
Today, I believe that education is being called upon. Prudence is my mantra and it governs how I begin each and every day. I do not feel this is the time to buy, the time to get on the bandwagon for a ride to glory. It feels more like the time to reap the rewards that have emerged and to watch the parade from the sidewalk for awhile. It is an interesting view.