Garrett Roche – Don’t Forget the Macro When Investing in Stocks

BIO: Garrett Roche is Chief Investment Strategist at Uxbridge Capital Advisors, a private wealth advisory firm in New York City.STORY: Garrett got caught up in the Nokia stock when the technology bubble hit. He hung on to the stock for too long even though it was clear the stock was not about to go up. He lost 60% of his investment.LEARNING: Take a macro view when picking stocks. Have an average of 10 investments in your portfolio. “Don’t get caught up in the details of a single stock holding and focus so much on the fundamentals that you live in.”Garrett Roche Guest profileGarrett Roche is Chief Investment Strategist at Uxbridge Capital Advisors, a private wealth advisory firm in New York City.He assists HNW individuals, family offices, and endowments with investment portfolio strategy, economic and market trend-spotting, and portfolio and trading risk management.Previously he was a Global Investment Strategist at Bank of America Merrill Lynch, a senior research analyst, an economist at PricewaterhouseCoopers, a strategic financial analytics manager at JPMorgan Asset Management, and a credit portfolio analyst at Garnet Capital Advisors LLC.He holds a BA in finance and accounting from the National University of Ireland, as well as an MS in economics and an MA in public affairs from University College Dublin, Ireland. He is also a CFA charterholder, and an FRM certified financial risk manager.Worst investment everGarrett was attracted by the Nokia stock and got into it when it was selling at around $13 in the summer of 1999. He then bought more stocks at $21 in early 2000. He rode it up to $34. Then the tech bubble started to burst across the telecom landscape.Seven weeks later, the stock fell by 40%. Garrett decided to hang on and got caught up in a bull trap. The stock price would go up a little then go down again. It was a complete roller coaster.By September 2001, Garrett had lost about 60% of his original investment. This is the point where he decided to sell.Lessons learnedDon’t get caught up in the detail of a single stock holding where you’re focused so much on the fundamentals that you live in.Stand back and take a macro view that incorporates a broader picture of your investments.Andrew’s takeawaysStop losses can bring value.Portfolio construction is very critical. Have an average of 10 investments in your portfolio.Actionable adviceTake a step back when you’re entirely compelled about a narrative around a stock, especially if it’s in a new industry.No. 1 goal for the next 12 monthsGarrett’s number one goal for the next 12 months is to increase assets under management and clients service. He’s also developing machine learning techniques and algorithms around portfolio constructionParting words “Stay vigilant and always remember the macro overlay.”Garrett Roche [spp-transcript] Connect with Garrett RocheLinkedInWebsiteAndrew’s booksHow to Start Building Your Wealth Investing in the Stock MarketMy Worst Investment Ever9 Valuation Mistakes and How to Avoid ThemTransform Your Business with Dr.Deming’s 14 PointsAndrew’s online programsValuation Master ClassHow to Start Building Your Wealth Investing in the Stock MarketFinance Made Ridiculously SimpleBecome a Great Presenter and Increase Your InfluenceTransform Your Business with Dr. Deming’s 14 PointsConnect with Andrew Stotz:astotz.comLinkedInFacebookInstagramTwitterYouTubeMy Worst Investment Ever Podcast