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Blooming Tree Wealth Management

"When I Change What’s on My Investment Watchlist"

By Ryan O'Connell

While preparing for the Q4 BTWM Virtual Lunch Webinar on November 3, I received a question via email, which I answered during the 35-minute meeting.

“How often do you change the top stocks you’re watching closely, and what makes you move on from tracking one company to another?”

This question made me think of two memorable quotes from Hall of Fame basketball coach John Wooden.

  1. “Failing to prepare is preparing to fail.”
  2. Success is peace of mind that is the direct result of self-satisfaction in knowing you did your best to become the best that you are capable of becoming.”

The first quote speaks to the importance of executing a plan and sticking to it, which is vital to the success of your portfolio in the midst of a recession. To me, the second quote speaks to defining your own success; not holding your retirement portfolio to the standards of others. I define success around ‘is what we’re investing in doing what we need it to do for us?” If the answer is yes, it doesn’t matter what anyone else’s opinion of it is.

In other words, if we’re still on track to meet our long-term goals and have sufficient streams of income, temporary fluctuations in our principal balance won’t negatively impact our potential for success.

Imagine that you own a farm. Success for your farm might be answering yes to the question, “do we have everything we need?” If the farm yields everything you need to protect and care for your family, even if it doesn’t provide everything you want, would you sell that farm? Let’s say someone offers to buy your farm for 40% below fair value. How would you respond to that offer? I can tell you confidently that I would tell them to come back with a fair offer or get off my porch.

Currently, people and institutions are selling assets for 40% below fair value. This doesn’t mean you have to. Unless you are not currently getting what you need from your assets and your way of life must change as a result, why would you sell an asset for far less than it’s worth?

I change what’s in my watchlist based on my goals and the goals of my clients. While many of the world’s most valuable companies are below their fair value, I see opportunities. Until those companies no longer present long-term opportunities, they will be at the top of my watchlist.

This year has been difficult, but it’s temporary. History and the strength of earnings and the financials of the majority of companies in the S&P 500 should give us all hope that we will recover quickly.

Have questions about the market? You can always reach me at


*This is not financial advice.