In the financial market arena everyone is pundit and everyone has a say on one market or the other, sharing some of the unfortunate truths about investing some of them are from the past, and they stand true with the present scenario
- Saying “I’ll be greedy when others are fearful” is much easier than actually doing it.
- The gulf between a great company and a great investment can be extraordinary.
- Markets go through at least one big pull back every year, and one massive one every decade. Get used to it. It’s just what they do.
- There is virtually no accountability in the financial pundit arena. People who have been wrong about everything for years still draw crowds. Continue reading “I will be greedy when others are fearful – Is that easy ?”
Time Management plays a crucial part in life in all the fields and investment is one of the major decisions that you do.
There is always questions and discussions around me when is the best time to invest in the market. The simple answer to that is when you have cash. Cash is a strategic asset.
Some says the Indian market is overbought and some says the mother of Bull Run has just started and this will continue to last for many more years to come.
Whatever the scenario be excellent, good or bad knowing your time horizon before you make any investment is extremely important. This should allow you to keep Continue reading “Your Portfolio and Time Management”
Self-deception is costly when it comes to investing. So let’s consider some of the lies that a lot of us may be telling ourselves and the impact they may have on our portfolios.
You know what your investment returns are. You would be surprised at how few people actually know what their returns are. Even fewer understand their performance relative to a benchmark.
Here are some hilarious thoughts when you say and what does it actually mean:
1) That’s overbought (I’m not long and think buyers are stupid)
2) That’s oversold (I’m long and think sellers are stupid) Continue reading “Market Forecasting and Convictions”
Extraordinary returns follow extraordinary discipline. Discipline in buying and selling, and maybe the most important one of all, holding. Developing the conviction to hold is something that I’ve learned over time. It didn’t come easy. The basis of this article is to give some insight on how to develop the conviction to hold your winners. It is very tempting to sell along the way, and it’s okay to take a little off the table, but the big money is made by holding.
“It never was my thinking that made the big money for me. It always was my sitting.” — Reminiscences of a Stock Operator
Many of us, myself included, look at stocks that have made big moves and think to ourselves, “If I would have only knew about that company and bought it back then.”But would you really have developed the conviction to hold during the run up? The problem is that to achieve a multi-bagger in the portfolio, you have to hold a multi-bagger. And if you want it to change your life, you need to hold a lot of it. Continue reading “Patience is Power – Market Convictions”
The last two post were on forecasting the markets, so I decided let me continue on forecasting. The Atlantic published a challenging article on the decision-making abilities of financial experts sometimes back, I like the arguments and the study outcomes are not surprising to me 😉
There are experts, and then there’s everybody else. In finance, experts have studied the subject and follow the markets closely, so you’d expect that they’d be superior at betting on the stock market as well as on other financial matters, right? Well, perhaps not so much. As the psychologist Philip Tetlock—who did a 20-year study on the subject—famously said:
Experts are poorer at predictions than dart-throwing monkeys. Study after study has shown that low-cost index funds—investments that track major financial market indices—outperform “actively managed” mutual funds. Continue reading “The Financial experts Good, Bad and Worse”