Equity investing is something that can’t be taught or learned in a limited period. It requires time, patience and rules that you can bank on. I shared few principles from the famous book Beating the Street by Peter Lynch few days back. At the end of the book Lynch shared 25 Golden Rules of investing: (Which is interesting because I count 26)
- Investing is fun, exciting, and dangerous if you don’t do any work.
- Your investor’s edge is not something you get from Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand. Continue reading “Why you should invest in Equity Market”
Buying and selling in the market are the most important decisions the investors make. Maximum time the decisions are wrong and you end up paying the market fee for equity investment learning. In the past 36 years Indian market gave positive returns for 24 years and negative returns for 12 years.
Occasionally I do repeat my posts as some ideas from Mr Lynch’s book that I try to follow most of the time, they are old but they have major significance today too :- Continue reading “Beating the Street not beating the Markets”
How concerned should we be about the cyclical performance of fund managers or of our own portfolio?
Performance differences, relative to a market benchmark, don’t really matter over the long-term. Short-term (months or years) under-performance is a fact of life if you are trying to beat the market.
Investors are better off investing in an index fund if they can’t deal with this fact. Otherwise, with human behavior being what it is, investors who can’t accept this fact will buy high and sell low –destroying their wealth in the process.
Volatility and the cyclical performance of active management (i.e. investors trying to beat the market) are really blessings in disguise for long-term investors. Continue reading “Do Professionals really beat the market? Or it’s a Paradox”