In the stock market, there may be a lot of random walk along the way, but having a benchmark is indeed a decent barometer of how you are doing.
One perhaps needs a healthy balance of nonchalance and self-introspection by looking at the mirror every once in a while to assess whether something needs to change.
If you happen to be outperforming the index over a 5-10 year period, you are almost certainly ahead of the supermajority of investors.
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After a very good 2023 and 2024, I wrote the following in my 2024 annual letter:
“given the somewhat elevated valuation multiples among stocks I have looked at, I think I wouldn't be too upset if
