The market has been punishing some of my positions for months after each earnings report. Drops of 5, 10, or whatever it feels like that day.

And the results are good. Double-digit growth. Some exceeding 30%.

There isn't always a solid reason. Sometimes it's an estimate cut. Other times, the company decides to sacrifice growth today to build something bigger tomorrow. Or it temporarily compresses margins to widen its moat. Perfectly rational decisions. The market, however, doesn't distinguish between a company that stumbles and one that simply thinks further ahead than the consensus.

One only has to look at what has happened with Meta or MercadoLibre after their latest results. Extraordinary businesses. Solid numbers. Impeccable management. And the price falling as if they had announced the end of the world. Those who don't understand what they have, sell. Those who do understand, give thanks and buy more.

Of course, it's not always pleasant. It would be dishonest to say otherwise. There's something uncomfortable about seeing how quarter after quarter your selection makes you look like an idiot to someone just looking at a screen.

But the screen doesn't know what you know. And that difference is exactly where the money comes from.

So I add to my positions when I can. And the rest of the time, I do nothing.

Which, in most cases, is the smartest thing one can do.