Given how stocks have outperformed most other asset types in last few years (the S&P 500 is up 27% and 95% since the beginning of 2025 and 2023 respectively), it's perhaps appropriate to remind ourselves of inevitable drawdowns that come sooner or later. In July 2020, I wrote … [Read more...] about Great Decades Come with Gut Punches
Investing Mindset
How I approach investing
Why I’m Passing on the SpaceX IPO
Let’s begin by stating the obvious: SpaceX is a remarkable company that transformed space exploration into a new commercial industry, driven in large part by Elon Musk’s vision and leadership. After a long wait since its founding in 2002, SpaceX is finally becoming available to … [Read more...] about Why I’m Passing on the SpaceX IPO
How the three master investors would’ve ranked my stocks
A Note on the Market: Since my last blog entry, the stock market has kept climbing the wall of worry. It has gone on to new highs recently. As I’ve said before, I don’t plan to ever get out of the market completely but I continue to gradually raise cash by taking some money off … [Read more...] about How the three master investors would’ve ranked my stocks
Market Highs, Cash Reserves, and the Wisdom of Three Master Investors
A Tale of Two Quarters: Let’s begin with a look at the broader market. If the first quarter of this year gave you a sense of déjà vu, you weren't alone. We experienced a trajectory remarkably similar to Q1 2025—both years teased investors with a strong start before delivering a … [Read more...] about Market Highs, Cash Reserves, and the Wisdom of Three Master Investors
It pays to stay invested
In recent months, I have seen a change in casual investors’ behaviors. They seem more interested in stocks. These days, people approach me to see if I have any hot stock tips for them. Or they ask if I think the market is too high and it’s time to bail out. My response tends to … [Read more...] about It pays to stay invested
Businesses that went from emerging to entrenched quality
As my long-time readers would know, I am always looking for companies that are running quality businesses and have the durability to survive economic downturns. My goal is to find them, invest in them, monitor their progress, and just hold on to them as they grow. Last month, … [Read more...] about Businesses that went from emerging to entrenched quality
Never Sell: From Pulak Prasad’s book
In my last month’s post, I might have given the wrong impression that I am getting out of the stock market entirely. Indeed, I did sell off some stocks to replenish my dry powder cash bucket, as I wrote then. But that was the extent of my selling. Dry powder cash is only a small … [Read more...] about Never Sell: From Pulak Prasad’s book
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
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