The Election results are out & not as per the expectations of street.
Market didn’t like the results & we saw Sensex & Nifty close down by 6% today.
I’m pretty sure the Election Strategy worked well for you!
Now what’s the strategy going forward after elections?
No panic selling. Remember, when one panic sells, one sells cheap.
No panic buying.
I’ll continue holding on to my portfolio with patience & tolerance.
All the while, systematically adding quality businesses at reasonable valuations in a disciplined manner.
Also one needs to be cautious on valuations.
The valuations across board is still bit premium & hence buying undervaluation should be the strategy to enjoy margin of safety.
Buying only because the stock is down 10-20% isn’t a good strategy. Understand the business. Understand the valuations.
Remember, I used to repeatedly say, keep 5-10% cash in portfolio?
That cash is going to help in times like these.
