My investing style has evolved quite a bit over the years, to a point where I have stopped categorizing companies as ‘long term’ anymore.
I do specifically categorize some trades as short term where I have an event in mind around which I am investing (a special situation like a merger/demerger, a capex coming onstream etc), but for all other investments, I like to invest as long as I see scope for rerating and/or where growth is predictable. In Neuland, lumpiness is known, but the market seems to treat it as structural and the valuation oscillates wildly. I try to take advantage of such volatility wherever possible, and stay invested as long as the risk-reward is in my favour, and while momentum stays.
If the lumpiness in Neuland goes away, then the volatility in valuations will also likely reduce and I’ll keep holding. I’m learning to use some basic technicals for sell signals in volatile stocks, and try to buy them back if possible when the risk-reward improves. The theory is still evolving and can go quite wrong too.
| Subscribe To Our Free Newsletter |
