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4 Key Risks When Investing in the Market for the Long Term

Discussion in 'Technical Analysis' started by shabbir, Apr 10, 2022.

  1. shabbir

    shabbir Administrator Staff Member

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    Understand the 4 key risks for a long-term investor when investing even in the bluest of the blue-chip companies.

    Continue reading...
     
    shabbir, Apr 10, 2022
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  2. emailsaravanans

    emailsaravanans Active Member

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    Time and again you are insisting on understanding the business, and customers. Finally the lesson is as you said "Investing is not simple"...

    But only problem I have (most might have) is having too many stocks in the portfolio and not having time to spend time understanding the business and customers.

    Most importantly I think I am not in a position to decide stocks based on a single strong investment rationale. I think it is very difficult.

    Most of the time, we check if the company fundamentals are good, if it is recommended from a reliable source, if it is available cheap, if it is blue chip, if the sector is attractive. I think no where in this process we are applying investment rationale. I think finding ourselves the unique or moat why to invest in a company is very difficult. I don't know how to build that knowledge. May be few people like you and others (including Buffet, Rakesh, etc) are capable of... That is why we are looking upto people like you to fill the gap :) ...
     
    emailsaravanans, Apr 11, 2022
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  3. shabbir

    shabbir Administrator Staff Member

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    Reduce them. I don't increase more than 15. Ideally 12 to 15 is the best number to provide the needed diversification as well as trackable.

    You have to build your rationale or else it is better to invest via mutual funds. The reason I say investing is not simple.

    Reliable source / Cheap are all good but the point that you should also consider is this.

    Let's say you have invested from a reliable source and found it cheap as well. What happens when stock halves from the point you purchase. Your study will be the sole reason that you will be able to remain invested. Similarly, when you have invested based on study, and stock has doubled or quadrupled, you will have the courage to keep holding. If you rely on reliable sources, you will be tempted to book out for sure.

    Finding moat is not easy but it is worth the effort. The reason we have this community is to be able to discuss companies and business and when we do this, everyone benefits.

    However, remember, even if someone is able to fill the gap, the important aspect is to let your investment grow 5x, 10x and you can remain invested only if you are doing the research.
     
    shabbir, Apr 13, 2022
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