Since April 2012, I have undertaken the task of trying to beat the market and so far I have failed miserably. In summary, during this period (April 1, 2012 – Nov 8, 2013), the market (represented by the Sensex) has gained 18% while my portfolio has declined 4%. So in simple terms I have underperformed the Sensex by 22% points.
The intellectual and financial rewards of beating the index over a long period of time are extremely worthwhile so I am not throwing in the towel just yet. Here I am trying to summarise what I have learnt from my very costly mistakes over the past year and a half .
1. Sasta roye baar baar, Mehenga roye ek baar : Trying to buy cheap stocks is a losing strategy or at least I am not cut out for it. It is far better to pay a fair price (even…
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