A lot of investors talk about their stock like other people talk about religion: with too much conviction.
It happens in various ways: all the way while they own their stock, after an acquisition, after a decision made by the government, or simply because they want to pump their fucking shares on any occasion.
Other people are the same, the other way: they hate so much a stock that they jump on every occasion to put down the stock. If the stock drops a lot, they'll write or say: "I told you so!". If they are financial analysts, they'll write a short thesis after a big drop, jumping on the occasion to get some exposure in a tumultuous period.
Both ways make me sick like I've got the fucking Ebola. It makes me want to shit my guts and die.
A little exageration here, but, come on, versus the stock market and many many stocks, we are all blind or we have a very limited view about internal affairs of a business.
Have you read the thesis of Citron Research about Valeant? Or the writing on Seeking Alpha about Nobilis Health? Both of these are out in a period where almost everybody is anxious about what will happen with Healthcare stocks. I can't take these writings seriously but it looks like a lot of people do.
I could be excited and tell myself that it's a good period to buy more. But I still have a lot of money invested in these stocks.
More, I say to myself that the people who bought these stocks are easy to manipulate. Didn't they do their due diligence before buying? Do they doubt so much about their choices that any negative review make them feel nervous at the point to selling their shares with a loss?
Nothing new here, I've already written about how much market reactions make me ill. But I have to be honest here: With about 50% of my portfolio in Healthcare stocks, I've been too concentrated in the last few months. I'm sick about market reactions, but my sickness is partially due to myself.
I still believe a lot in healthcare stocks. But 50% is too much. Maybe the proportion should be 25 to 35% and not much more. I however think that this sector should be the largest in a portfolio. It's defensive and agressive at the same time. You'll get a low beta too. And as time goes by, more and more people will get ill and more and more people will die, simply because more and more people live on earth.