Investing Bytes is a collection of select tweets on my handle. I hope you enjoy reading them all at one place here.
Decade ago the challenge in investing was accessing information. Today the challenge is excess information and separating wheat from the chaff – separating news from the views.
Market is an auction room with traders.
When they are happy n have ample buyers, they quote exorbitant price. On the other hand when they panic and have fewer buyers they sell same stocks at throw away price. Investors should enter this room during panic to get a good bargin.
Fd = low risk in near term; high risk in long term
Equities = high risk in short term; relatively low risk in long term.
No one can predict a market fall, but we all can be prepared for one.
As equity markets fall, risk associated with it also falls and as they rise, risk also increase.
Its all about margin of safety you enjoy while investing.
“Buy before you miss out” and “sell before it goes to zero” are two most common feelings that leads to extreme bull or bear cycle. And surprisingly they both come one after another in no time.
Macro,micro, geo-politics, etc. have indirect impact on markets, but behariours and sentiments have direct impact.
So is in your portfolio, external factors have lower impact on ur portoflio than ur own behaviour.
No return is fixed,
No investment is risk free..
To invest worry free,
Asset allocation is the key..
Longer the retirement plan, higher are the chances of error. Error in estimating inflation by 1% and return by 0.50% can have huge impact on ur retirement corpus.
Hence, #retirementplanning is not a one time but continuous and endless process. It needs constant review.
There are are handful of successful multi-bagger stories and 1000s of unsuccessful stories. Studying failures will teach us a lot.
Many who don’t understand what to do with underperformance gives an excuse of long term investing.
For every 1 sucess story of long term investing there are 100s with failures. Not every underperfoming fund/stock is worth staying invested.
We live in a strange world.. where car insurance is mandatory but life insurance is not.
Value ur life before anything else.
There are three types of direct MF investors
-Those who don’t know
-Those who know
-Those who don’t know that they don’t know.
The third one are the ones who get trapped. Rest two generally do well.
Most forecasts are just extrapolation of past and current trends. I hardly seen a forecast that is against the current trend. Its rarity!
Investing sucess is not just being right, but being more right than others. Relativity defines sucess, in life and investing both.
Bear markets are over-researched, bull markets are hardly analysed, they are only justified.
What do you need to create wealth from Equity Mutual Funds
You will be surrounded by many during good times, but only few will be in sight when the going gets tough.
In life and investing both.
At 15% cagr, from 15th year onwards, you make more than your initial principal every year. This is power of patience, also known as compounding. Magic it is!