The Bull Market IQ Test
Welcome to issue #13 of The Davem Dish. Every two weeks I share what actually works in investing based on my 20 years of wins, losses and expensive lessons. You’ll also get my thoughts on solopreneurship and life in general because the same principles apply — keep it simple, stay consistent and focus on what matters.
Last week someone DM’d me: “I’m up +600% on $OKLO in six months. This is easy money!”
Sure it is, until it isn’t.
Everyone’s a genius in this market. AI infrastructure companies with zero earnings (or even revenue) are commanding billion-dollar valuations. Every trade is perfect and everyone is crushing the indexes.
Remember RINO? My Chinese stock that dropped 85% before being delisted? That was during a bull market too. Or PERI, the promising Israeli small-cap that dropped 75% last year? Funny how nobody posts screenshots of those trades. I talk about these mistakes because that’s how I learned.
The Playbook I’m Not Following
Want to grow an online audience talking about stocks? Here’s the formula:
Promise 10-baggers
Show cherry-picked wins
Create FOMO
Tell people exactly what speculative companies to buy
Never mention your losses
The algorithm rewards sensation and rage-bait.
Posts about “the next 10-bagger” get much more engagement than “here’s a boring company that compounds 15% annually.”
I could play that game but instead I share what actually works in the long-term. But don’t just blindly trust me either. The only person that should be trusted with your financial future is yourself.
Here’s What Actually Works
After 20 years of investing, here’s my process:
Find quality companies with consistent track records
Calculate fair value using basic math
Buy at attractive prices
Cut losses short
Let winners run while using trailing stops to take profits
No prophecies, fortune telling, or bold predictions.
Just a systematic process that works in any market. It might not make you rich overnight, but it will compound wealth over time.
The Uncomfortable Reality
Markets reward speculation until they don’t. Corrections happen, bubbles burst.
CISCO was the NVIDIA of 2000. Trading at $80, a can’t-miss future and everyone getting rich.
Today? $70. Twenty-five years later.
The AI infrastructure market has become a casino where everyone is on a “heater”. But the house will always win unless you’re disciplined enough to define your exits and limit your ego.
What I Actually Do
I follow patterns:
Companies that grow earnings consistently
Management that delivers on promises
Valuations that make mathematical sense
Entry points where risk/reward works
This is the edge and its observable to anyone who knows where to look.
Your Three Choices
Chase the hot thing (works until it doesn’t)
Pay someone to manage your money (might work but have to pay fees)
Learn a simple process that actually builds wealth
Most people choose #1, get burned, then choose #2.
Few choose #3 because it requires self-trust and patience.
The AI infrastructure market may have lost its mind but you don’t have to lose yours. Keep your expectations realistic and your stops tight.
In bull markets, everyone’s a genius. Speculation will keep working until it doesn’t.
When it stops, do you have a plan?
Want to learn more about how to pick winning stocks in any market? Check out my free guide Stock Selection Simplified.
Davem Watchlist Insights
Added Celestica ($CLS) last week to the watchlist. Yes, it’s an AI infrastructure company up +194% YTD. I’m not chasing at these levels, but the company passes my financial strength criteria, so I’ll be patient and wait for a pullback.
Discipline beats FOMO every time.
Take a look at the snapshot below and let me know what you think in the comments.
Earnings season is picking up and I’m watching these companies this week for overreaction opportunities:
Enjoy your week and invest well!
Cheers,
Andrew
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The content provided are personal opinions and presented for educational purposes only, as of the date published or indicated. Davem Advisors LLC is not a bank, licensed securities dealer, broker or investment advisor. Displayed returns are unaudited. Nothing stated constitutes a recommendation or advice as to whether any investment is suitable for a particular investor. You alone are solely responsible for determining whether any investment, strategy or service is appropriate for your objectives. Past performance is no guarantee of future results. Inherent in any investment is the risk of loss.