During bull market, every Tom, Dick & Harry will run.
It’s your duty as an investor to buy only those businesses which have sustainable businesses & available at reasonable valuations.
Buying a stock just because it’s rising and hoping that it will continue to rise is a stupid & most likely a loss making strategy.
If a junk stock in your portfolio is rising in bull market, which usually does every 5 odd years, I think it’s best to book out. Else, you’ll end up waiting again.
Focus on quality businesses.
Leverage is the single most factor destroying institutions, corporations & individuals. Stay away from it. Especially during bull markets.
Keep decent cash in portfolio.
Be mentally prepared for a 30-50% drawdown after a steep runup. It’s natural for stocks to correct after excesses.
Avoid following herds. Helps in life too.
It’s crucial that you protect your thinking process too. Especially during bull runs. Bull runs are a lousy teacher. It seduces smart people into thinking they can’t lose.
