November 13, 2017

Lessons from 4 decades of investing

1. The market will do a major pull back at LEAST once in a decade. That will be dramatic – 1993’s -40%, 2008,….that is a great time to be buying, not panicking. If you have entered the market in 2009 you have been lulled into believing that the markets cannot go down and there is no stomach churning 40% fall in the waiting. It is. 2019? 2022? 2024? we do not know, that is all.

2. You can keep saying ‘I will be greedy when others are fearful’ but also remember that the market can be ‘Irrational for much longer than you are solvent’. All games have to be played between these 2 sayings. Chances are when others are greedy we are likely to be more greedy and NOT fearful. Warren Buffett says brilliant things, can we live it?

3. I know all about bias. Seriously, however, I am also a victim of bias. This takes us to philosophy…..What is Maya? Maya is the ability to make sure that all the philosophy that you know does not work FOR YOU when it is for YOURSELF. Be ready for that.

4. There is virtually no accountability for pundits who come on media. Media includes blogs. Pundits include yours truly. If you benefit from my blog, more power to you. If you lose, more power to your broker. We can be wrong for long periods of time.

Read more at http://www.subramoney.com/2017/11/22646

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