Things have settled down a bit in the stock market. Since that nasty crash in March, stocks have mostly been on an upward trend. So, has the stock market already bottomed out? Or would there be another leg down from here? I can’t say. I admit it would be a useful thing to know … [Read more...] about When’s the market bottoming?
How I approach investing
Today, Investors have become more enthusiastic about buying stocks. Although I don’t see euphoria about stock ownerships yet, but stock investing has become trendier. This is just my observation, entirely based on anecdotal evidence. Perhaps it’s a reflection of the stock … [Read more...] about Why are you buying stocks today?
Barron’s magazine had its annual roundtable issue last week. This is where it gathers several high-profile investors and money managers around a table to discuss new year’s prospects for the economy and the stock market. There was much consternation about the next twelve … [Read more...] about Another weekend of worry
Happy new year! I thought I would start this new year’s first post with something provocative. My investing motto has been to ‘buy right, sell never’. Buying right is of course neither controversial nor provocative. It’s just common sense. Selling never can be questioned by … [Read more...] about Buy right, sell never!
Warren Buffett once famously said that his number one rule in investing is to never lose money. And yet, as I had pointed out in a previous blog post, his own company Berkshire Hathaway’s shares had dropped by 50% more than once. How would he reconcile those drops with his number … [Read more...] about I avoid losing money
I wish all investors get at least one bear market in their investing journeys. A lot of people would consider this a curse—but it really is a blessing in disguise. I will explain why. Today, financial media is focused on when this bull market will end. As if the end of a bull … [Read more...] about Bear market: a curse or a blessing?
At the Markel’s shareholder meeting in Omaha in June, someone from the audience posed this question to the company management: “I met a very large international money manager last night for dinner and he warned me that now is not the time to invest in US stocks. What do you think … [Read more...] about Gratuitous advice with no accountability
I wrote about my principal-protected investments in a February blog post (Market neutral investing). Those are only a tiny fraction of my portfolio. I only use them for my liquid capital—money that I might need in short order and therefore can’t be tied up in ordinary … [Read more...] about Careful with defined outcome investing
2018 was a brutal year for individual stock investors. Following the relatively calm performance in 2016 and 2017, the US stock market in 2018 was marked with high volatility. It went down by 10% in the first quarter, and then gradually recovered. It dropped again in the fourth … [Read more...] about Investor anxiety
A lot of investor underperformance comes from them trying their utmost to avoid seeing losses. Emotionally, losses hurt twice as much as gains feel good. But there is no way to avoid seeing short-term losses in long-term investing. It’s inevitable for a long-term investor to see … [Read more...] about A gauge for my portfolio