Monday, September 10, 2018

Random Thoughts

It has been a year and a half since I fully committed to my investing journey. I have experimented with a few investing styles and have perhaps made some losses due to my forays into some slightly riskier stocks, reducing my earnings since I began. As the tariff war in the US goes on, I see quite a few of my stocks suffering, which had been bought with the assumption of world trade, you know, not deciding to take a nosedive.

Image result for birds flying
The birds flew away, just like the cash I placed into the market recently.


It's hard not to doubt myself and wonder why I didn't just enter the S&P ETF and gotten maybe up to 6-7% just by buying an ETF (since the start of 2018), and save myself the trouble of active investing. I advise my friends who are barely interested in investing to do so; why shouldn't I heed this advice?

I guess it is my own belief that I am able to achieve better returns than the market. I think that the 2 or 3% alpha that I could possibly get would justify my purchasing of value stocks that others won't, to not ride the greed train and go after the Facebooks, the Netflixs', Iqiyi, Teslas of the market. (I still maintain my reasoning for purchasing Alibaba and Alphabet, in spite of them not being conventional value stocks)

As this journey draws on past the halfway mark for my second year, I remind myself that I am giving myself at least one and a half more year to see if I can be more consistently beating the market.

The thing about me is that I truly do understand what the average investor would think whenever they see their stock prices drop. Sincerely, is it not all our hard-earned money going down the drain, if our stocks and investments don't do well? I feel the irrationality, the doubt, the fears coursing through my veins, telling me to just sell all my stocks now, just get away and invest only in safe bonds.

Yet sometimes, it takes some writing, some pondering, to realize that there are ups and downs in the market. And just like in other aspects of life, its what happens when things are down that truly matters. For this slight drop in the bucket for my investments, I will learn to do the right thing; and that is to do nothing. The stocks I have purchased are still bought with logical decisions and as little emotions as I could, and many are still dividend providing stocks that will justify being there in spite of their slight under-performance now.

I shall wait and see. For the market giveth and the market taketh away

1 comment:

  1. Hi there. Yes, it's best to sit back and relax sometimes and stop thinking about the market. Some days, it's up and others it's down. If your investment strategy is buy to hold and your not some frantic trader, then there's no need to panic. All will be good in time.

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