2024 Portfolio Reboot: 3 essential investment insights from COVID-19 pandemic

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portfolios. Valuable investing lessons were gleaned, but regrettably, some faded over time. With the looming threat of the disease resurfacing, everyone must revisit the lessons learned during that challenging period and determine how to incorporate them into current investment decisions.

The pandemic yielded crucial lessons—some guided us toward sound decisions, while others highlighted the repercussions of the investment mistakes we made. Amid the pandemic, offices and shops shuttered, and businesses were profoundly impacted, leading to some companies declaring bankruptcy during the lockdown. The physical world appeared distant as substantial portions of the economy faced closures or slowdowns due to government measures to combat COVID-19.

In contrast, digital economy enterprises largely continued operations seamlessly despite global lockdowns, with COVID-19 accelerating the adoption of digital technologies. Nevertheless, the abrupt onset of the pandemic underscored the importance of preparedness for unforeseen events, cautioning against over-reliance on technology stocks. Investors must anticipate challenges that could temporarily dip their portfolios into the red.

The key takeaway is resilience, acknowledging that the stock market will eventually rebound, requiring patience to weather the lows until the highs return. When selecting and compiling stocks for your portfolio, prioritize investments in antifragile companies, especially in light of the pandemic and persisting uncertainties. Companies that derive income from various sources are more resilient to disruptions in any single sector.