Two ideas I missed because of my biases
1.PSU banks: Never invested properly because they never created wealth before. Despite being in the markets for like a year or so, I had this perception that PSUs are gonna be traps and have the worst asset qualities. Missed out on them big time. I dont wanna give myself hard time on it because I was quite new to investing at the time they were at great valuations( Still am new but basically very dumb back then
Learning Lesson: When cycles turn, the worst businesses actually end up performing better than the best ones. Imagine a 10 year time period with one 5 year good cycle and one 5 year bad cycle. If the best business rises by 50% CAGR in that 5 years, it will probably give no return to moderate returns in the bad cycle.
However, a bad business will give 70% CAGR in 5 years and take it back in the bad cycle.
Hence, in an upcycle bad businesses will perform better because they are in such a state that the base is low and the improvements can be huge.
2.Indigo:
Again, the bias of airlines being wealth destroyers made me turn away from the stock. All the books I read about said against it and I trusted their opinion against mine
books being: What I learned about investing from Darwin, Michael Porter and Peter Lynch books
Learning lesson: Failed to recognize the importance of timeline when it comes to such ideas. I am not invested for eternity. I am only here for a few years so I don’t need to care much about such things. the industry structure and its importance is very necessary when investing for a considerably long time. But I do GARP investing so I should have taken that into account. Long way to go
Updates on Q4, I will update my portfolio in June first-second week because of traveling back to india and exams at the moment. I will share my rationale behind the changes as well. Lot to learn and observe
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