Go Aggressive, Go big strategy of stock market investing

I know slow and steady is good and compounded 15% is fine.

But.... recently I have come to think differently, If you are secure - meaning you have your own house, stable savings, good interest income and a stable well paying job or business - you should aim for the 'home run' and put 50% of your stock allocation to 5 promising small-mid and microcaps, the kind of stocks where you roll the dice and have 3 of the faces printed SIX

A 20 bagger of 1 lakh is just 20 lakhs - but a 20bagger of 20lakhs can make even your future generations happy.

Stability and prosperity often don't go together.

 

The return will be the same, just that the initial capital is higher. On the other way, lets say the 5 decide to tank due to your bad luck, you lose 20L where as the guy with 2L invesent loses 2L. % loss is again the same. All boils down to affordability. Invest only what you can afford to lose and dont get swayed by returns during bull phase. Market needs patience and too much aggression is not the right way in the markets.

Just my views.

Cheers
G1

 

Completely agree...
My point was for those who have reached a place of financial stability and security. If the punt doesnt compromise their current prospects noticeably, then it may be worthwhile(without benefit of hindsight) to try and get to the next level.

You mean if all the 5 picks go to 0? Is that probable. I dont think so

 

Why not build a portfolio from small, that way by the time you are financially stable you will know what market is and you would have seen ups and downs. Going all out for a newbie can backfire big time if the stock selection is even slightly frayed.

Cheers
G1

 

Yes. Big punts definitely not advisable for someone who needs time to be financially stable.