19 min

130 - How to invest during a crisis‪?‬ The DIY Investing Podcast

    • Investing

Mental Models discussed in this podcast: Stress Testing Time Horizon Stoicism Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience. 
Follow me on Twitter and YouTube Twitter Handle: @TreyHenninger
YouTube Channel: DIY Investing
Show Outline The full show notes for this episode are available at https://www.diyinvesting.org/Episode130
Key Concepts for Investing during a Crisis Stress Testing - Bankruptcy Risk? Goal: Survive Stress test businesses not stocks Focus on Fundamentals Long-term is where all of the value is at The next 1 or 2 years is only 10-20% of the value most of the time. War somewhere is not inherently a crisis for your portfolio Are your specific businesses being affected? Land war in your country? Destruction of infrastructure owned by your companies? Sanctions against your companies? There has been almost constant war for the entirety of the last 100 years somewhere in the world Doomsday Scenarios It is usually worth betting on optimistic outcomes If you're wrong, you likely won't be around to deal with it. (Nuclear war) Summary: The Russian Invasion of Ukraine has created a situation where three crisis grip the world: War, Inflation, and COVID-19. How should investors think and act during such a crisis? 
Stress test your portfolio. Focus on the Fundamentals. Does the war affect you directly? Avoid doomsday thinking.

Mental Models discussed in this podcast: Stress Testing Time Horizon Stoicism Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience. 
Follow me on Twitter and YouTube Twitter Handle: @TreyHenninger
YouTube Channel: DIY Investing
Show Outline The full show notes for this episode are available at https://www.diyinvesting.org/Episode130
Key Concepts for Investing during a Crisis Stress Testing - Bankruptcy Risk? Goal: Survive Stress test businesses not stocks Focus on Fundamentals Long-term is where all of the value is at The next 1 or 2 years is only 10-20% of the value most of the time. War somewhere is not inherently a crisis for your portfolio Are your specific businesses being affected? Land war in your country? Destruction of infrastructure owned by your companies? Sanctions against your companies? There has been almost constant war for the entirety of the last 100 years somewhere in the world Doomsday Scenarios It is usually worth betting on optimistic outcomes If you're wrong, you likely won't be around to deal with it. (Nuclear war) Summary: The Russian Invasion of Ukraine has created a situation where three crisis grip the world: War, Inflation, and COVID-19. How should investors think and act during such a crisis? 
Stress test your portfolio. Focus on the Fundamentals. Does the war affect you directly? Avoid doomsday thinking.

19 min