February 5, 2021

Investing, circa 2021

If you haven’t been paying attention to the stock market lately, you missed some excitement. Just check out this stock chart.

At the end of the day, a hedge fund or two nearly went bankrupt, another hedge fund guy quit Twitter, and a bunch of reddit users had some fun. And some probably made quite a bit of money.

While it was tempting to jump into the fray, I ultimately sat it out and stuck to my long-term plan.

This quote by Warren Buffett, discussing the fallout of another hedge fund - LTCM, seems like a good reminder:

To make money they didn’t have and didn’t need, they risked what they did have and did need. And that’s foolish. It is just plain foolish. If you risk something that is important to you for something that is unimportant to you, it just does not make any sense.