ANML SPRTS | Part 2
Unleashing your inner Fox!
Last time, we roared with the Lions of the investment kingdom. Today, we're switching gears to a different kind of spirit animal: the cunning and adaptable Fox. 🦊
Who is the Fox?
In the wild, foxes are known for their agility, adaptability, and their strategic approach to survival. Similarly, in the financial landscape, Foxes exhibit a level of calculation and strategy that stands out. They are diversified, careful, yet daring when the moment is right.
What do Foxes Trade or Invest In?
The Fox's investment portfolio is typically as balanced and adaptable as they are. They're likely to have a mix of stocks, bonds, ETFs, and even a slice of higher-risk assets. Why? Because Foxes understand the value of diversification and are always open to opportunities across various asset classes. They can also have multiple time horizons. The ability to strike on a small, quick opportunity, or the ability to ride a long, well timed investments.
Risk Profile
A Fox is comfortable with more moderate risks. Not as daring as the Lion, but they're no pushovers. After conducting detailed research and analyzing market conditions, Foxes make strategic moves.
Foxes are life-long learners who value knowledge and wisdom above all else. They often rely on detailed research and a thorough understanding of market conditions to guide their decisions.
Legendary Fox Investors
Warren Buffett, perhaps the most famous investor of all time, embodies the Fox's spirit with his diversified portfolio and strategic investment moves. He's known for his extensive research and patience in waiting for the right time to pounce on an opportunity, just like a fox in the wild. One of Buffett's most notable investments was in The Coca-Cola Company. After the stock market crash of 1987, Coca-Cola's stock was down significantly. Buffett saw the company's intrinsic value and resilience, recognizing it as a timeless brand that people around the globe loved.
In 1988, he started buying Coca-Cola shares, eventually accumulating about 7% of the company for $1.02 billion. That investment has grown significantly over time and continues to provide substantial dividends to his company, Berkshire Hathaway.
Buffett's purchase of Coca-Cola perfectly embodies the Fox investing style: patient, strategic, and grounded in thorough analysis of a company's long-term prospects and underlying value.
Warren’s Biography can be found here
Ray Dalio, founder of Bridgewater Associates, is another fantastic example. His emphasis on diversification and strategic risk-taking aligns perfectly with the Fox archetype. One significant example is his bet on gold during the 2008 financial crisis. Dalio's firm, Bridgewater Associates, went heavy on gold as a hedge against economic uncertainty. As markets tumbled, gold prices soared, and Dalio's hedge paid off handsomely.
Dalio's bet on gold during a turbulent economic period aligns with the Fox style of investing, demonstrating strategic risk-taking and a focus on diversification. His use of gold as a hedge reflects his understanding of the broader economic landscape and how different asset classes interact with each other – a knowledge gained through continuous learning and detailed analysis, traits of a true Fox.
Ray Dalio’s famous “Big Debt Cycle” book, a must read!
Areas of Focus
If you're resonating with the Fox spirit, here are some areas to lean into:
Diversification: Continue to diversify your portfolio across various asset classes to spread risk. Don’t limit yourself to specific asset classes, branch out and your your broad knowledge to find opportunity across a wide landscape.
Research: Dedicate time to learning about markets, companies, and asset classes you're interested in. Investing in yourself impacts your bottom line more than you know!
Patience: Wait for the right opportunities. Timing is a large part of the battle, and a Fox is a pro at this, not letting FOMO and other reactive emotion take control of his moves.
Stay tuned for our next post where we will explore another spirit animal in the investment world. Until then, happy investing Foxes!
Until next time, keep your seat at the table!
Jaymes R.