The Lede
Yesterday marked the end of Q2. With everything that’s happened over the past three months - the war in Iran, a monster IPO, the removal of the PDT rule, and a new Fed Chairman, just to name a few, I’ve witnessed a major swing in my portfolio’s ROI. As a result I can’t help but think about Benjamin Graham’s Mr. Market and the importance of knowing the value of my investments better than he does.
What I’m Learning
Truth be told when I stopped day trading and started building a long-term portfolio at the beginning of 2026 I did not know how to value a company and I still don’t, but I am learning.
Instead I purchased shares of companies that I was familiar with using my knowledge of technical analysis to enter off the highs and near areas of prior support. I used the skills at my disposal then and at the time of this writing that appears to have worked out for me thus far.
Unfortunately, the skills I developed during my time as a day trader will only get me so far in the world of value investing. Technical analysis can’t answer questions regarding the value of company and when Mr. Market becomes highly emotional that is certainly something I’ll want to know.
I started reading The Intelligent Investor by Benjamin Graham, studying Aswath Damodaran courses on valuation, and reviewing financial statements all of which have already begun to pay off.
I can now confidently review a company's financial statements answering questions pertaining to profitability, growth and risk of bankruptcy. I am beginning to learn the basics of valuation and the tools, such as DCF (discounted cash flow), that are used to determine intrinsic value. And last but not least, I am now well versed in dealing with Mr. Markets emotional swings and can better prepare myself for those occasions.
Portfolio Pulse
I’m still up about +5.6% YTD, although that is well off my portfolios high of +18.6%. However, strengthening my understanding of the businesses I’ve invested in has allowed me to stand by my positions with greater conviction even with Mr. Market as my business partner.
The Close
Thanks for reading!
- Eric Seel