Those who invested in
Pharma in 2020
Nasdaq ETF in 2020-21
Chemical & IT Stocks in 2021
Metals in 2022
They’re probably cursing their decision.
That was investing on basis of what was hot & trending.
Let me tell you a secret where I made most money in my investing- usually, money is made in quality businesses in deep beaten down & uninteresting sectors.
Nobody wanted to touch ONGC & ITC even with a 10 foot pole when I bought them.
At times, both have been my largest allocations respectively & have made me bumper profits with lucrative dividends.
Investing is complicated when one is in search of quick hot stocks & lack of research.
Though, I agree that uninteresting ideas test your patience like it did for 2+ years in ONGC & ITC with me, however the fruits of patience are sweet.
Peter Lynch once quoted something like this, “Most of my gains have came after 3 years of holding the stocks in my portfolio.” From my personal experience too, I can’t agree more on this. Stay invested in quality businesses with patience & long horizon. You’re bound to make money.
Don’t make mistake of throwing up on each market correction. Markets don’t go up forever. Markets don’t go down forever. That’s the nature of market.
Chasing what’s hot & fads is injurious to health as well wealth.
