In my last post, I shared that I have liquidated one-third of my dry powder investments that went into stocks in March-April this year. I also said at the time that if the market continued to make new highs, I would be able to divest all of my dry powder. Well, it happened sooner … [Read more...] about Ready for another downturn
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Ignore your cost bases
As the stock market rose to a new high this month, it was time to divest what I had invested during the brief April downturn. I raise cash when stocks are reaching new highs and invest in them when they go down (my dry powder investing). As I considered what to sell, I noticed … [Read more...] about Ignore your cost bases
Regret – learn to live with it
“Market is on an upswing. I don’t want to be caught buying at the peak” “Stocks look cheap but what if they go further down from here” “Every time I buy a stock, it immediately goes down in price” “If I sell today and the stock moves up another 25%, I’d look … [Read more...] about Regret – learn to live with it
Bought stocks for my kids 13 years ago
My older son had a stock picking competition when he was in middle school. That was the year 2010. That competition gave each student a virtual cash account to invest in stocks, bonds, and ETFs. Whoever made a portfolio that performed the best over a 10-week period would … [Read more...] about Bought stocks for my kids 13 years ago
Avoid false positives in your investing
In criminal justice system, “it is better to let the crime of a guilty person go unpunished than to condemn the innocent.” [US Supreme Court 1895] Broadly speaking, in any system where there is uncertainty and incomplete information, there are two types of decision errors that … [Read more...] about Avoid false positives in your investing
Dry powder investing helps me stay productive
Since I last wrote in March when it was nearing a 10% correction, the stock market today is clearly in a correction. By some measures, it has been a bear market (with NASDAQ down more than 20% in early April, for instance). So what would an investor do today? As in previous … [Read more...] about Dry powder investing helps me stay productive
Recent downturns through history’s lens
As the market teeters at the edge of another correction (so what else is new!), as always, we stand ready to take advantage of low prices whenever they come. My dry powder coffers are now full. Over the last 12 months, I took all the cash out of my portfolio that I had invested … [Read more...] about Recent downturns through history’s lens
Make your investing an infinite game
I like to think of investing as a kind of an infinite game. Although it is not strictly an infinite game, I believe it has similar characteristics. So what is an infinite game? It’s a game that has no definitive conclusion. It has no finish line and no one person can be … [Read more...] about Make your investing an infinite game
My portfolio performance 2024
Yes, it is that time of the year when I compare my portfolio’s performance with the market indexes. For reference, see 2023’s results here. Usually, I start with my portfolio’s one-year relative performance. But then I also follow it with my oft-repeated refrain that … [Read more...] about My portfolio performance 2024
Why we can do better than professional investors
Stanley Druckenmiller regrets selling his NVIDIA position too soon. He said recently that he wished he had held on to his NVIDIA shares, but admitted he’s no Warren Buffett: “I don’t own things for 10 or 20 years. I wish I was Warren Buffett.” I admire his candid confession but … [Read more...] about Why we can do better than professional investors