I have been guilty recently of making too many changes in my portfolio, rushing to buy on good result, selling off on a bad quarter. Sometimes even an order received by the company may act like sudden upsurge of voltage, and I jump to buy. Quite often with disastrous results.
This is not an entirely correct strategy, but sometimes one may need to switch to a new sector, and this may entail selling some shares to have cash. For example, I have bought Siemens, CG Power, L&T, Cummins etc. recently. I had to necessarily sell some shares.
This because I had missed the PSU, Defence rally. I did not want to miss the capex train.
It may again may not be the right thing to do, but waiting at the station while the trains pass you buy may feel silly.
By the way, I am reading Richer, Wiser, Happier of William Green these days. It is a great book, but becomes a bit confusing as you go through different ways to wealth taken by the successful investors. And you will be more confused when you see all the ways are espoused by Green. So, one has to find one’s own way.
One thing though sticks. Look at your proposed or existing investments critically. If necessary, talk to a devil’s advocate. The thread is quite educative because of a variety of comments. More comments are welcome.
Your thoughts?
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