Investing a lifelong journey

While analyzing Sofina some time ago, I came across a memorable quote from the then-chairman of the board, David Verey:

"The work of an investor is never finished. Investing is an ongoing activity. We’re happy to report on it annually, but it remains a continuous story. The efforts we make today will show in tomorrow’s results. Only time will tell if our decisions were indeed the wisest ones."

I find this statement very apt and relatable. Ideally, you want to achieve top results every year, but investing inherently comes with ups and downs.

You can never predict if your expectations will be met, exceeded, or proved too optimistic. Along the way, technological breakthroughs or new products on the market can change everything.

During fixed moments, like Sofina’s annual report or our monthly portfolio review, the numbers often don’t tell the whole story. Some positions in the portfolio might show impressive returns but have already peaked. At the same time, there could be a recently purchased stock that’s currently down by 20%.

Emotionally, stocks with large gains feel like the stars of the moment, while the ones in the red seem like the laggards. But the reality is often different. In fact, the stocks showing losses could hold the greatest potential.

We understand this rationally, but emotions often rule the market. People can get attached to ‘winners’ and panic over losses.

The work truly is never done. As an investor, you’re constantly engaged: seeking new buying opportunities, monitoring current positions, and tracking market shifts. Investing is a lifelong endeavor that never gets boring.

Today’s efforts yield rewards down the road—sometimes tomorrow, sometimes a year or more later.

One of the more frustrating aspects for investors is that others rarely see this work. They only see the buys, sells, and the results. This is familiar to me as a newsletter writer as well: I only write about a stock when I decide to buy it. The (partial) analyses of dozens of other companies end up in my metaphorical drawer or trash bin.

Whether these decisions—to buy or to leave the research on the shelf—were the right ones, only time will tell. The same goes for the company I’ll present tomorrow.