In case you missed it, check out “Thanksgiving: The Long and Short of It” in The Anecdote.
“Kill your darlings, kill your darlings, even when it breaks your egocentric little heart, kill your darlings.”
That’s the advice Stephen King gives to aspiring writers in his seminal book On Writing: A Memoir of the Craft.
It’s a riff – and surprisingly tamer given King’s horror pedigreed - on the original advice given by Arthur Quiller-Couch in his 1916 book On the Art of Writing in which he wrote that you should “murder your darlings.”
In writing this means getting rid of unnecessary storylines, characters, or sentences - elements you’re invested in, but that must be removed for the success of the overall story going forward- because they no longer work.
Stock picking, like writing, is a reductive process.
You start with a lot of ideas, ruthlessly pare them down until you find one that works, and ride it to its conclusion.
Then you move on to the next one. At least that’s what we’re supposed to do.
Too often we fall in love with a stock when it treats us well, then stick with it long after the good times are gone.
I was recently reminded of this by a great post from Charlie Bilello, which included the following list.
All these stocks were former winners, and somebody’s darlings.
It can be an intoxicating ride up the left-hand side of a chart, and a long painful hangover down the right.
That’s when the winner becomes the loser.
The trade becomes the investment.
And sometimes, the investment becomes the write-off.
So when the time comes, remember to kill your darlings.
Kill them all.
Or they may kill you.
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Weekend Strategy Video: 11-27-2021
After clicking the video below, make sure to maximize it and change the definition to 1080HD.
This week’s trading links:
Market & Finance Links*
*Some tips for getting around paywalls.
Note: Market links are light today due to the short week.
A little more color around Friday’s stock market implosion. The Wall Street Journal
Remember bonds? A lot of people remembered what they’re for this week. The Reformed Broker
In the market, two contradictory things can be true at the same time. A Wealth of Common Sense
The most important thing about an investment strategy is having one. Investment Talk
A couple of articles that highlight some security issues around trading crypto. Morningstar and The Wall Street Journal
What will this era of the stock market look like in hindsight? The Reformed Broker
Why home prices are set to decelerate. Calculated Risk Blog
Your best investment is in your health. A Teachable Moment
What if Bitcoin really does replace gold as a store of value? Institutional Investor
The best stocks of 2020 are the worst stocks of 2021. The Irrelevant Investor
Should we really stock freaking out about inflation? Time
It’s Good, It’s Good*
*Some tips for getting around paywalls.
Money was literally free for the taking in San Diego this week. Twitter
But, maybe not. Fox40
NASA is about to crash a rocket into an asteroid. How cool is that? The New York Times
A fantastic piece on preparing yourself for change, by my buddy Phil Pearlman. Prime Cuts
“Everybody is entitled to their feelings about things, but expertise is earned.” Seth’s Blog
This is probably no surprise, but Keanu Reeves is cooler than you. Esquire
God, I love this. In praise of the public library. Collaborative Fund
Two friends set out to hike three of America’s longest trails in less than a year. Here’s their story. Los Angeles Times
It’s one of the most controversial subjects of our time. Milk. GQ
Should you change your passwords every 30 days? Debunking some popular security myths. Ars Technica
If you feel like you’re getting more phone notifications lately, you’re not imagining things. The Wall Street Journal
How did the body of a woolly mammoth that died 100,000 years ago end up 150 miles out into the Pacific Ocean, 10,000 feet deep? The New York Times
Yes, we do have fall in California. Here’s photographic proof, taken where you’ll find me almost every Saturday morning. California Fall Color
A profile of Tommy Caldwell, the man who climbs the most dangerous cliffs in the world. The New Yorker
An ode to barbecue potato chips. The Atlantic
Become a paid subscriber to the Lund Loop and get content like this every Saturday, plus daily chart updates Monday through Thursday, and access to our members-only Discord.
Best of all, it’s only $10/month or $100 for an annual subscription.
The Week in Tweets
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Thanks for reading this week’s edition of The Lund Loop.
I want to hear your opinion on these or any other topics you see fit to pontificate on.
So drop me a line.
And if you really like The Lund Loop, why not purchase a subscription for a friend, loved one, or division of co-workers?
Talk to you soon,
-B
P.S. It should go without saying - but I’ll say it anyway - all opinions expressed in The Lund Loop are my own personal opinions and don’t reflect the views of my employer, any associated entities, or other organizations I’m associated with.
Nothing written, expressed, or implied here should be looked at as investment advice or an admonition to buy, sell, or trade any security or financial instrument. As always, do your own diligence.
