☕️ What to do when you don’t know what to do

Howdy! 🤠 

The legendary Suze Orman has a little tactic she pulls out when she really wants to make you think about something. She calls it Suze School—as in, you’re about to get taken to class. 

It’s not an insult, but a badge of honour. 

For two reasons: 

1. she’s super-savvy; and  
2. she doesn’t mince words.  

You get whatever she wants you to think about or consider straight up—no fluff, usually with a dash of humor and fun, too. 

Yesterday, I got Suze Schooled. 

“Look, Keith…” she began after reading yesterday’s 5 with Fitz, “I get that Palantir’s a great company and that a lot of people are doing foolish things with their money right now when it comes to that stock and the [current] sell-off. But there’s a bigger issue.” 

My ears perked up. 

Then she dropped the hammer. 

“Many people don’t know what to do when they don’t know what to do.” 

Son of a gun, I thought to myself. 

45+ years in the markets and I’d forgotten one of the most fundamental lessons of all. 

Something I first learned as a new investor when I had no clue what to do next because I didn’t know what to do next. 

Suze, of course, is right. 

So, I thought we’d take a page outta my own investing journey today rather than rehash the same tired old headlines that, honestly, really aren’t helping matters much… geopolitics, the Fed, tariffs, etc. 

I developed a simple 3 step process years ago to help me break through the logjam of uncertainty that was holding me back at the time under very similar circumstances. I’ve long since forgotten the name of the stock that was giving me heartburn at the time, but I recall how uncomfortable it was not to know what to do. 

I call it the “A-D-C” for reasons that’ll become clear in a moment. 

It’s perfect for those moments when you have no idea what to do. And, I’m sharing it today because I hope you find it as helpful in your life and your investing as I do with mine. 

Why you’ll want to ADC 

Sell-offs can be scary. 

It doesn’t matter whether you’re talking about a stock like Palantir or even the broader markets.  

The headlines scream, the red ink flows and the pundits talk doom and gloom all dang day long… each one of whom is trying to outdo the next. Social media magnifies the problem. 

It’s easy to feel overwhelmed, especially if you’re just getting started or don’t have a lot of money. Heck, even if you do. 

I know this sounds trite, but don’t be. 

Sell-offs like the one that’s underway now are actually your best friend if you want to build real wealth and serious financial security over time.  

The key is knowing how to respond when everybody is losing their you know what. 

How to ADC 

Step #1: Assess 

“Observe. Reflect. Clarify.” 

Believe it or not, your first job isn’t to trade when the markets get nuts or a specific stock slumps. It's to take a breath. 

The smartest thing you can do is step back and assess what’s actually happening. Not what the media thinks you should think is happening. Not what social media thinks is happening. And sure as heck not what others think you think about what they think is happening. 🤦‍ 

Keep it stupid simple. 

• Observe: What’s moving, and why? Are you looking at panic selling or a genuine structural shift? Is there an identifiable, logical reason for whatever is happening. Keep your emotions out of the equation. 

• Reflect: How does this really impact your goals and timeframe? A 10% dip feels catastrophic in the moment, but it’s often just noise over the long run. Palantir, for example, is up thousands of percent over time, do you really care about a dip of 9%? Amazon lost more than 90% of its value after the dot-com crash and look where it is today... more than 65,000% higher. Apple has been nearly bankrupt 3 times, yet it's worth $3T today. Get my drift? 

• Clarify: What do you already own, and why? If you can’t answer that, it’s time to tighten up.  

Sell-offs are not fear generators. 

Fear is what you feel when you're scared so if you take that out of the equation what you're left with is clarity.  

Put another way, lots of red ink has a funny way of stripping away the hype and revealing which companies are truly built to last. 

Sell-offs are clarifiers. 

Step #2: Decide 

“Consider. Evaluate. Select.” 

Once you’ve assessed the landscape, what's happening and why you may feel the way you do, it’s time to "decide."  

• Consider: What opportunities look better now than they did last week simply because the price dropped? Remember something you hear me say often - a Keithism if you will - "the markets are the only store on earth where people fear a sale."  

• Evaluate: Focus on quality. Strong businesses with fortress balance sheets, repeatable growth, and leadership in their industries. History shows very clearly that the world's best companies always rise to the top, which is why your job as an investor is to latch on to 'em as early in the process as you can find 'em. Volatility is the price of admission, nothing more. 

• Select: Many people ask me constantly about "hot stocks" but that's a really foolish way to do things. Flip that around. The question you want to ask yourself is which stocks are likely to be there when you need 'em years from now. Then, buy 'em! It's not about chasing bargains but finding those names that you can confidently own long after the sell-off fades.  

Gambling is for the casinos. 

Investing is about stacking the odds in your favor, one smart decision, one smart stock or fund at a time. 

Step #3: Commit 

“Plan. Act. Persist.” 

Many people "decide" to be rich but then fail because they don't do anything about it or worse, chicken out. 

I can’t think of a more expensive mistake. 

Decisions are like bellybuttons in that everybody has one. 

The world's most successful investors and traders follow through... they "commit." 

• Plan: Decide how much you’ll invest and how you’ll pace it. Dollar-cost averaging and its lesser-known cousin value cost averaging (DCA/VCA) are tailor-made for market uncertainty. Both can go a long way toward limiting risk AND boosting profit potential over time - which is why I advocate 'em to the point of sounding like a broken record. Suze, too. 

• Act: Hesitation is a wealth killer. I can't tell you how many thousands of investors I've heard over the years lamenting that they should have bought X, Y or Z back when it was far cheaper. Just $1,000 invested in Nvidia back in 2011 would be worth ~$652,560 today. Every $100 invested when Microsoft sold off during Covid would be worth ~$390.59 today. Every $1,000 invested in Palantir just 3 short years ago would be worth ~$18,220 today, even after the sell-off. 

• Persist: All the money in the world doesn't mean squat if you don't stick with it. Markets rise and fall over time and the sooner you come to terms with that reality, the easier this gets. Wealth ALWAYS builds fastest for those who stay the course and stick to the plan.  

Sell-offs are not the monster under the bed many think but a door to opportunity. 

So, kick the dang thing open and "ADC" your way to the party. 

You CAN do this… just like I did. 

I'll see ya there! 

Here’s a chart showing how I think about the ADC to clip out and paste on your monitor or your bathroom mirror. 😀 

Oh, and because we’re not here for the dental plan. 

• Walmart just hiked full-year guidance just this morning. (Read) LEAPS could be mighty attractive in addition to the stock itself. 

• Palantir’s sellers may finally be getting exhausted. You know what to do! 

• ESPN’s streaming could be a “new Coke” moment that actually costs the company subscribers, imho. (Read) Putskies on Disney?   

Bottom Line 

Anybody can pick stocks. 

Knowing “how” the game is played is what gives you the edge.   

Learn. 

The FUD – fear, uncertainty and doubt – will fade. 

To be replaced by serious confidence, profit potential and financial security. 

You got this – I promise 

And, of course, thank you Suze – you’re the best, my friend! 💯 

As always, let’s MAKE it a great day. 

Keith 😀 

PS: If today’s 5 has been helpful and you’d like to learn more about the strategies, the tips, the tactics and the investments that can help you get where you want to be, I’ll be here if you need me. 

PPS: The world’s best companies are still putting up great numbers which is why you want to own ‘em.