Learning to invest vs Investing to learn

Learning to Drive You’re on a fairly empty side-street, your cousin, an experienced driver next to you, in the passenger seat. It is her 8-year-old Fiat Punto, but the make or model doesn’t matter to you, just that it’s a functioning car. You don’t know if you will enjoy driving, but you want to be able to. You don’t know if your cousin is the “best” driver around, but you know she’s been driving for a few years and you trust her. She instructs you step-by-step to first push the brake, turn the key in the ignition, press down on

Read more

Learning from the latest market decline

Long periods of boredom punctuated by moments of terror This phrase is attributed to many different people said to be describing many different professions. From driving big-rig trucks, flying aircraft to modern warfare. And of course, it has since been co-opted by the investment profession and by the best investors, as a metaphor for the vagaries of the market. Personally, I think it’s a bit dramatic comparing warfare with the buying and selling of stocks. True to form, financial media in the US announced 5th Feb 2018 was “the worst point decline in history“. Phrased like that you can’t help

Read more

My three biggest investment mistakes

I have a recurring quarterly google calendar reminder to look at my personal finances and take action where required. This means checking whether I have too much or too little liquidity, making investment allocation decisions around parking money in liquid funds versus deploying in the stock market and finally, a check on the components of my stock portfolio and whether it needs any tinkering. With not much “tinkering” to do the last time, I spent time taking stock of my portfolio performance starting back in 2006. I focused on what went well and also went spectacularly wrong. Thankfully I had more of the former,

Read more

The investment strategy that beats the average investor – I

“Which mutual fund should I invest in?” is one of the most frequent questions that I get in daily conversation and through this site. Typically, those asking the questions have two things in common: you don’t have the time and / or interest in analyzing and picking individual stocks like here you’re looking for relative conservatism in the equity investing universe I’ll answer this question across two posts; the why and the how To start of I must say, I’m not a fan of mutual funds, especially the actively managed open-ended variety (which the bulk of funds are). This is evident from the relatively

Read more