What Happens in Our Portfolios on an Average Day? (The Power of Doing Nothing) 🧘

The stock market is often portrayed in movies and on the news as a place of constant drama, flashing screens, and panic-fueled decisions.

But what actually happens in a long-term investor's portfolio on an average day?

The honest answer is: not much.

Our stocks either go up, down, or don't change. On any given day, they move very little. Over the course of a week, they move a little more. Over the course of a month, they move more still. But the core action we take is typically nothing, or buying a little more.

Finding the Buy Point: When to Act

If we're not constantly trading, what triggers us to act? We only buy when we see one of our existing holdings decline to a buy point.

Usually, this means the price has fallen below our initial purchase price. This decline isn't a signal for panic; it's an opportunity.

For example, let's look at a stock like Progressive Insurance (PGR). Say it ended yesterday at $247.54, but over the last month, it was over $265. For a long-term investor, that price decline isn't a threat—it's a chance to acquire more of a great company at a discount.

The Caveat: Conviction Is Everything

This strategy comes with a critical caveat: Ensure the company remains on the right track as you perceive it.

The market may turn "hard" against a company, but you must stick with it if your original research holds true.

Consider the extreme example of Super Micro Computer Inc. (SMCI). I bought my initial shares in the high $40s, after the stock had already declined from over $100. I thought that was the bottom.

But the market had other ideas, and the price dropped further, declining into the teens. The company was facing numerous challenges, including the loss of its accounting partner and the threat of being delisted.

Did I sell out of fear? No. I continued to purchase more—just two shares on both November 14th and 15th at around $17. This wasn't a massive investment; I wasn't risking $10,000. But I believed in the underlying business. The pattern from November to May looked like a speed bump.

\As of July 2025, I have 20 shares at an average cost of $32.06. Today, the stock is valued at $53.38.

The point is this: If you believe in the stock's long-term future, then keep buying it.

Investing is Like Wading into the Ocean 🏖️

This entire process is best described by an analogy: purchasing stocks is like wading into the ocean.

1. You step into the shallow waters. (Your initial, small purchase.)

2. Succeeding waves continue to hit you. (The price goes up and down, hitting your average cost.)

3. If the water is too rough, you can go back to shore. (You can sell, but only if you lose conviction in the company.)

But you might find that once you get out into deeper waters, where you're fully committed to the long-term, it all calms down. The daily noise disappears, and the power of compounding takes over.

Save modest amounts, research great companies, and buy more when the waves knock the price down. That's the secret to successful investing.