What a super start to 2012 for our equity markets........
Sensex above 17K, Nifty above 5K. India is one of the best performing markets YTD. A lot of beaten down stocks of 2011 (Banking, Real Estate, Capital Goods) have even outperformed indices.
How's your portfolio doing? Obviously, up from 2011.
Are you Sad and cursing yourself for not putting all of your cash & cash eq into markets in 2012?
If Yes, then you are suffering from Hindsight Bias.
As Taleb says- Quality of a decision is not determined by the outcome.
Putting everything in equities 1 month back was not a great decision- There was a possibility of more correction due to problems in EU and US and policy issues in our motherland. ( Interestingly those problems are still very much there, but Mr. Market has forgotten them for now.) And by putting everything, you would have missed ability to buy cheaper (if you would have got a chance).
Though due to Luck, putting everything would have been a successful decision.
But we can't survive for long durations just by Luck.
As Howard Marks says-
There are old investors, and there are bold investors, but there are no old bold investors.
Putting some part into Equities? Hey that was must!!!
Some hint was given here. (Though I had no expectation of such a fast up movement)...
Why?
Why should I answer when I have the luxury to fall back to expert advise.....
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” - Warren Buffett
Sensex above 17K, Nifty above 5K. India is one of the best performing markets YTD. A lot of beaten down stocks of 2011 (Banking, Real Estate, Capital Goods) have even outperformed indices.
How's your portfolio doing? Obviously, up from 2011.
Are you Sad and cursing yourself for not putting all of your cash & cash eq into markets in 2012?
If Yes, then you are suffering from Hindsight Bias.
As Taleb says- Quality of a decision is not determined by the outcome.
Putting everything in equities 1 month back was not a great decision- There was a possibility of more correction due to problems in EU and US and policy issues in our motherland. ( Interestingly those problems are still very much there, but Mr. Market has forgotten them for now.) And by putting everything, you would have missed ability to buy cheaper (if you would have got a chance).
Though due to Luck, putting everything would have been a successful decision.
But we can't survive for long durations just by Luck.
As Howard Marks says-
There are old investors, and there are bold investors, but there are no old bold investors.
Putting some part into Equities? Hey that was must!!!
Some hint was given here. (Though I had no expectation of such a fast up movement)...
Why?
Why should I answer when I have the luxury to fall back to expert advise.....
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” - Warren Buffett
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