1) Reflections on 2019 -
Although the stock markets performed well last year; my own portfolio lagged by a country mile - my worst underperformance since the 2008 global bust!
Here are some of the key lessons I relearnt last year -
contd...
Although the stock markets performed well last year; my own portfolio lagged by a country mile - my worst underperformance since the 2008 global bust!
Here are some of the key lessons I relearnt last year -
contd...
2) a. Trying to game the market is a total waste of time
b. Analysis of macro data doesn't pay
c. No indicator works all the time (including the yield curve)
d. Monetary conditions determine asset prices/valuations.
e. The stock market isn't efficient all the time
b. Analysis of macro data doesn't pay
c. No indicator works all the time (including the yield curve)
d. Monetary conditions determine asset prices/valuations.
e. The stock market isn't efficient all the time
3) f. Stock prices overshoot in both directions
g. Selling out of a quality business just because it has run up a lot is almost always a big mistake
h. Quality matters - not all growth is created equal
i. A company's 'moat' determines its long-term fate
j. Euphoria = danger
g. Selling out of a quality business just because it has run up a lot is almost always a big mistake
h. Quality matters - not all growth is created equal
i. A company's 'moat' determines its long-term fate
j. Euphoria = danger
4) k. Concentrated portfolios are a double-edged sword
l. Hedging doesn't work all the time
m. Drawdowns are tough but unavoidable in this biz
n. Volatility is not risk
o. Valuations still matter
p. Long-term investing sounds simple but it isn't easy
The end.
l. Hedging doesn't work all the time
m. Drawdowns are tough but unavoidable in this biz
n. Volatility is not risk
o. Valuations still matter
p. Long-term investing sounds simple but it isn't easy
The end.
