Finance & Legal

Don't Isolate Your Investments, Too...

Written by

Lotte Geldermans

Published on

March 31, 2020
All Posts

Unless you’re living under the rock in a very remote part of the world, with limited access to the outside world, or unless you’re Jared Leto...

You should know at this point that the COVID-19 virus, mostly referred to as the coronavirus, has officially been declared a pandemic by the World Health Organization. But if you’re reading this, and not the news, then it’s safe to assume you’re stuck at home with nothing to do. Guess what?

Why Jared Leto, you asked? Aha, so you ARE living under the rock, meditating most of the time, only occasionally sneaking out of your cabin, out of your wife’s sight, so that you can keep up with the current world’s development? Well, that’s exactly what Jared did for 12 days. Almost. Well, not exactly. The world-famous actor and singer isolated himself a bit, bit more than the rest of the world currently does. Hidden deep in the desert, he had no clue what was happening outside the facility.

Now, let’s take a moment and imagine you’re Jared Leto. Maybe not an Academy Award winner, but still: handsome, talented, and pretty wealthy. Being unaware of the coronavirus (bless you), you think the world will be the same when you come out of your silent meditation retreat. You expect some stability of the economy and you have some general investment plans. Your good friend, who happens to be a financial advisor, always comes with good advice about what to do next, since you guys hung out a lot together during weekends getaways with your families. Life is good, you have it all figured out.

And then you discover what has happened to the world when you were disconnected. 

Were you prepared? No. Did you expect it? No. Should you’ve been prepared? Yes.

What Would Jared Do?

But it’s very unlikely you could have predicted the coronavirus crisis. All other investors felt the shock. There are industries that were hit much harder than others, but nearly all sectors experienced this financial tornado. The bull market is over and none of us knows what comes next.

If you’re smart (and chances are that you are, since you’re reading the Pitchdrive blog), you’re again isolating yourself from the world, working from home, and you have much more time on your hands than ever before. Which is why it might be the right moment to knock yourself back into reality. Reevaluate your portfolio. Take a closer look. Is your portfolio diversified enough? Truly successful investors will use every opportunity to think about their portfolios, they observe how the market reacts to the coronavirus, and most importantly, they do not let their emotions make decisions. What they do, instead, is use this whole uncertainty to exploit their unbalanced diversification. 

Coronavirus fears shouldn't stop you from adding to your investment portfolio

The legendary investor Ben Graham said: “The intelligent investor is a realist who sells to optimists and buys from pessimists.” This is where Pitchdrive comes in: thanks to our spectacular evaluation and qualification process of new startups, we are able to present to our investors only those companies we truly believe might do well after the market’s downturn. Especially now, when none of us know what the future brings, we use our expertise and strict qualification to make sure you’re able to invest as securely as possible. But the rest is in your hands: without diversification of your portfolio, you can’t expect return of your investments. We wrote a lengthy article about why it’s a must to diversify.

Some of the most iconic companies of this decade will be launched during these difficult times.

Silent meditation in the desert isn’t needed anymore (might be helpful for those who really fear the virus spread). You can still isolate yourself at home but take this time to re-evaluate your financial goals and re-think your portfolio. There will be a company, likely unknown to you at this moment, that will make it out of this crisis. Keep in mind that Uber, Airbnb, Slack, Pinterest, WhatsApp, Square and Venmo were all startups founded during the last recession (2008-2009)! Put your fears aside, download Pitchdrive app and become part of the new era: some of the most iconic companies of this decade will be launched during these difficult times.

And Jared, if you’re also reading this: most of the movie productions, as well as music tours have been cancelled. With so much time on your hands you’re welcome to join Pitchdrive's early stage VC as well, so the next time you reconnect to the world, you will find out you were responsible for someone else’s success :)

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