Good morning everyone!
I just wrapped up our 2 days investing bootcamp last weekend to over 200+ investors, and honestly, I’m feeling pretty energized.
Hearing their whys and subsequently their mindset shifts, it’s the kind of thing that reminds me why I enjoy doing this. It’s super fulfilling!
Which brings me to a story I want to share with all of you. Right after the class, I had a coaching call with someone who’s been investing for a few years but felt like he wasn’t making any progress.
We had a long chat, but everything circled around the below story.
He said, “Bro, I bought this stock because everyone online said it was the next big thing. I watched a few YouTube videos about it, those guys were hyped, and I figured hey, I’m not gonna miss out this time. What’s the worst that could happen!?”
I asked: “So what happened?”
With a half-defeated voice, he said: “It’s down 40% and I still don’t understand what the company does.”
Oof.
Best part is that I emphasized with him, because I’ve been there too 😭
But this is the kind of thing I see all too often: buying or selling based on noise, hype, or someone else’s conviction... and then wondering why it doesn’t work out.
Which brings me to today’s post.
It’s something I’ve pieced together over through years of trial and error, watching patterns repeat, and seeing what actually works.
I call it the Ultimate NO-BS Investor Cheat Sheet to know when to buy, hold, or get the heck out of an investment.
Make sure to bookmark this, because when the market gets noisy, and it will, this is the cheat sheet that’ll help you stay grounded. Use it to gut-check your thinking before you do anything crazy.
When To Buy A Stock
Buying a stock is like starting a relationship. You’re not just picking a pretty ticker. You’re committing to the business, the leadership, the market, the risks, and yes, the weird mood swings of quarterly earnings.
Here’s when it makes sense to say yes:
✅ You truly understand how the company makes money.
✅ It’s serving a huge and growing market (aka lots of future customers).
✅ It has a long runway for growth, still early in the story.
✅ It has a moat, some durable edge that keeps competition out.
If you have troubles explaining what the business does in a few sentence, it’s probably not a buy.
Only buy if you actually get the business, and like what you see.
When NOT To Buy A Stock
If you’re buying because “everyone’s talking about it”, do me a favor, put your phone on the table, and take a walk.
Because that’s not a strategy. That’s FOMO.
Never buy because:
❌ It’s been going up like crazy and you feel left out.
❌ People are posting rocket ships and yelling “TO THE MOON”
❌ A YouTuber said it’s “the next Tesla”
❌ You’re trying to catch momentum with no clue what the company does.
No one gets rich chasing fast money. You might end up burning it faster. Real wealth comes from owning businesses that earn it over time.
When To Sell A Stock
Selling gets emotional. You see a gain and want to protect it. You see red and want to escape. But smart selling isn’t about feelings, it’s about facts.
Only sell when:
✅ The company’s fundamentals are weakening, for eg: shrinking sales, crumbling margins, product issues, leadership chaos.
✅ The business model is broken or being disrupted, and it’s not clear it’ll recover.
✅ You have somewhere better to put your money right now.
When NOT To Sell A Stock
Here’s the thing - most of the time, the urge to sell isn’t coming from data, it’s coming from discomfort.
And that’s usually when you need to pause, not panic. Don’t sell if:
❌ The stock “feels high”. Feelings are subjective.
❌ You think a crash is coming. Newsflash: no one knows. Even Jim Cramer or that guy who has “successfully predicted 3 out of 5 recessions”.
❌ Some talking head online or CNBC saying it’s doomed. Hot takes ≠ hard evidence.
Only sell when the business case changes, not just the price. If the story hasn’t changed and the fundamentals are intact. Stay the course. Sometimes, the best winners are those that you do nothing about it.
When To Average Down
Now, let’s say the stock price drops, your instinct might be to run. But before you do, ask: has anything actually changed about the business?
Average down if:
✅ The business is still strong.
✅ The valuation is even more attractive now.
✅ You’d still buy it today, even if you didn’t already own it.
Think of it like your favorite item going on sale. If you loved it at full price, why wouldn’t you want more at a discount?
When To Average Up
Now let’s flip the script.
The company just crushed earnings. Revenue’s growing, margins are expanding, the outlook is even stronger, and the stock pops.
And now you’re thinking, “It’s already up... should I wait for a dip?”
Not necessarily.
Average up confidently if:
✅ The company just delivered strong results and reinforced your original thesis.✅ The fundamentals are even better than when you first invested.✅ The stock is still reasonably, or even attractively valued, despite the jump.
Remember: you’re not buying the chart, you’re buying the business.
If the business just proved it’s firing on all cylinders, and it’s still fairly priced, adding more is conviction.
By the way, if you don’t know already, I have a Telegram channel filled with personal market insights, real-time macro trends updates, and investing knowledge I’ve learned over the years, plus the occasional video of me rambling about life. And it’s free to join!
If that sounds like your cup of tea, I’d love to have you join us 👉 https://t.me/patiencebuildswealth
That’s it, friend. Investing rewards the ones who stay curious, stay clear-headed, and stay in the game long enough to let good decisions compound.
So next time your feed’s screaming BUY or SELL, take a breath, revisit this cheat sheet.
Feel free to share this around with your friends if you think it’s helpful for you!
Till the next post, ciao!
Patience builds wealth,Bjorn