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
LongTermInvesting
If you wait for the robins
Over the last two years, too many people bailed out on stocks because they wanted to avoid a possible recession. Peter Lynch once said: “Far more money has been lost by investors trying to anticipate corrections, than lost in the corrections themselves.” Economic forecasts are … [Read more...] about If you wait for the robins
Should investors prefer dividend paying companies over others?
In a word, no. Why do I say that? In this post, I will share my thoughts on dividends payers. Across the universe of all publicly traded companies, I group them into three distinct buckets: (1) Companies that pay generous dividend today (>4%). Though they tend to have … [Read more...] about Should investors prefer dividend paying companies over others?
A low-cost way to invest in alternative assets
I found this book at a Costco book stand. I am not a Tony Robbins follower but a quick scan of it made me curious. So I borrowed a copy from my local library. This is not meant to be a book review though. For some good online reviews of the book, check these two links: here … [Read more...] about A low-cost way to invest in alternative assets
My magnificent six stocks
I just finished reading Semper Augustus’ 2023 shareholder letter. Chris Bloomstran, its well-known CIO, writes detailed annual letters. They are full of well-researched data and, while long, always make interesting read. This year’s letter was no different. About a half of it … [Read more...] about My magnificent six stocks
How can it be a bull market?
As I work on putting together my portfolio’s end-of-year performance review, I thought I’d drop a brief note on the state of the markets today. As of January 24th, the stock market has fully recovered from its 2022-23 drawdown (if we go by the S&P 500 price index). … [Read more...] about How can it be a bull market?
On my portfolio concentration
The S&P 500 is a popular index among US investors who prefer hands-off dollar cost averaging way to invest in stocks. It is a market cap weighted index which is perhaps the most suitable form of an index for passive investing. Why? Because it does not require any rebalancing … [Read more...] about On my portfolio concentration
In anticipation of economic recovery
I have been hearing concerns about the state of the economy, inflation trend, looming recession, etc. since the beginning of 2022. Some blog readers have sent me comments on this. I hear this from other individual investors who I regularly interact with. All these macroeconomic … [Read more...] about In anticipation of economic recovery
Near-term returns versus long-term
I admit that my stock portfolio is not doing well this year. Nearly all my major holdings are down by double digits. More than half are down by a third or more. Five are down by 50%. My top 25 holdings make up vast majority of my stock portfolio – about 88% of it. Here is the … [Read more...] about Near-term returns versus long-term
If you’ve ten years to invest
Last week I read Davis New York Venture fund’s annual letter. Its eponymous portfolio manager Chris Davis writes thoughtful analyses of investing landscape every year. I enjoy reading his investor letters even though I have not (yet) invested any money in his Davis funds family. … [Read more...] about If you’ve ten years to invest