Investing notes influencers don't tell you

[xuyen]

Feel free to add yours, here are a few from my end:

U don't know how you would react to catastrophe so plan your portfolio and fail safe accordingly. Most of today's influencers were not there the day Bear Stearns died (some were probably not born, and most don't know what I am talking about) but watching Dow nosedive was not an easy feeling. Sensex that year was around 7500. Yes you read that right.

Investing or SIPing into a 5* MF is like fucking a hottie. Feels nice and for a while everything is beautiful. Until when it isn't. The fund manager changes or loses his mojo or whatever, and soon the 5* is now a 3* or worse 2* and nobody's telling you how to get out of the fund but everyone is telling you about the latest hot funds.

Good stocks need buy n hold for a few years. It's like marriage and once you are in, you are in. Of course that isn't sexy but fucking is so every 2 weeks there's a new set of hot stocks. Meanwhile i invested in tata corp at 550 average n because I am greedy I sold at 4200/-. About 7x return but in all honnesty if I had held on could have been 14x.

Hedging is a real thing. If you don't diversify you are at policy risk if nothing else. Say travel n tourism is out of favor and you were majorly into hotel n alcohol stocks, now what? Again not a sexy topic, just like everyone n their uncle right now is tomtoming green n solar. It was specialty chemicals at one point, microfinance at another. U get the drift.

Hope this helped, at least some of you!

 

[imjapun]

@xuyen My two cents.

1. Investing should be as boring, simple and monotonuous as possible. So much so that you are compelled to automate the process and only review once in a while. Just because one has surplus money and there is some exotic investment instrument having a fancy name, one need not invest in it citing reasons of getting spectacular returns. Often such decisions backfire.
2. In mutual funds, look for consistently performing funds rather than hot and 5* funds. If a fund is consistently beating benchmark by 1 to 2 percent, then we do not need to see whether it beats the highest performing fund in the category or not. That is because that high performing fund may not be consistent.
3. Have a conservative estimate on higher side for your requirements or goals and a conservative estimate on lower side for your investments. This is a killer combination which can help one minimize risk.
4. An average retail investor is just that. They should not become fund managers or ace investors all of a sudden. An investor should not churn his portfolio unless its because of a change in his risk appetite or asset allocation or emergency.

 

[skbaba110]

@xuyen Define good stocks

 

[resjudicata]

@skbaba110 It should be business you can understand and what are external factors having impact on the its performance

Should have enough information and/or historic data available

Have promoters with no integrity issues

If monopoly how much it can recover once its monopoly gets broken