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.
Popular Podcasts
Stuff You Should Know
If you've ever wanted to know about champagne, satanism, the Stonewall Uprising, chaos theory, LSD, El Nino, true crime and Rosa Parks, then look no further. Josh and Chuck have you covered.
Dateline NBC
Current and classic episodes, featuring compelling true-crime mysteries, powerful documentaries and in-depth investigations. Special Summer Offer: Exclusively on Apple Podcasts, try our Dateline Premium subscription completely free for one month! With Dateline Premium, you get every episode ad-free plus exclusive bonus content.
On Purpose with Jay Shetty
I’m Jay Shetty host of On Purpose the worlds #1 Mental Health podcast and I’m so grateful you found us. I started this podcast 5 years ago to invite you into conversations and workshops that are designed to help make you happier, healthier and more healed. I believe that when you (yes you) feel seen, heard and understood you’re able to deal with relationship struggles, work challenges and life’s ups and downs with more ease and grace. I interview experts, celebrities, thought leaders and athletes so that we can grow our mindset, build better habits and uncover a side of them we’ve never seen before. New episodes every Monday and Friday. Your support means the world to me and I don’t take it for granted — click the follow button and leave a review to help us spread the love with On Purpose. I can’t wait for you to listen to your first or 500th episode!