Simple Investing

Last few months I had taken my mind off active investing and looking out to buy anything significant. Off late started to buy some select stocks.

The sector rotation & same old themes of last 2-3 years seem to be doing well for momentum/stage investors. I am now seeing a trend of many investors flocking toward the momentum strategy and trying hard to learn & practice it. Reason is obvious – success of this strategy in last few years. Many DIY investors have joined this club.

Personally, I think I have reached a personal investing strategy stage where I no longer care for even the CAGR of the portfolio YoY or in whatever timeframe. Why is that? Thats because I have now started believing in the businesses & my stock selection to the extent that I am sure over long term I will get desired results so it’s a futile exercise to track this aspect anymore. (Although I would track it over long term but at a very high level).

With God’s grace, I have learnt beautifully to stay away from noise, FOMO, sectoral trends, hot stocks and what not. Off and on, my portfolio stocks catch momentum one by one, and I find it amusing when they do. Somehow, I do not like the momentum investors entering my portfolio stocks (although there is nothing, I can do about it, it’s just a personal feeling), that’s because many times they run much ahead of fundamentals and me being salaried simple retail investor, have to buy my own stocks at much higher prices than I would have got opportunity to had they not joined the momentum or reach Stage 2 (or whatever).

I enjoy excellent discussions on businesses, vision of companies, promoters, ethics, global policies, positioning of India, economy in general and how companies fit in rather than on which stocks will give good or maximum returns. Guess I was wired like this from the very beginning of this complex yet Simple & ongoing journey.

Thanks all for being there for these beautiful discussions and looking forward to many more such!