The WeekendInvesting Newsletter

As investors, our primary goal is to achieve good performance in our portfolio.

However, it is equally important to avoid poor performers that can nullify the impact of the good stocks. In this article, we will discuss how to identify and eliminate underperforming stocks from our portfolio, thereby improving overall performance.

Imagine having a well-diversified portfolio with 20 stocks, out of which 15 are performing well, and 5 are underperforming. The overall performance of the portfolio will be significantly influenced by the poor performers. No matter how well the other stocks are doing, the negative impact of a few weak stocks can nullify their gains. Hence, it is crucial . . .

Reading Time : 4 Minutes

Behavioural finance is an important aspect of investing that focuses on how our behaviour and emotions can influence our investment decisions and outcomes. In this article, we will delve deeper into this topic and explore how training our minds to consider worst and best-case scenarios can help us make more informed investment choices.

One intriguing concept in behavioural finance is the idea that if we consistently train ourselves to prepare for the worst-case scenarios, those scenarios may never occur. This notion can be applied to the world of investing as well. When buying stocks or building portfolios, it is crucial . . .

Reading Time : 5 Minutes

WeekendInvesting Daily Bytes

On December 20th, the markets experienced a significant swing, dropping nearly 500 points after reaching a new high earlier in the day. This correction, while sudden and steep, shouldn’t come as a surprise to those who understand the nature of market fluctuations. It’s important to remember that ups and downs are an integral part of investing.

From a broader perspective, we lost four days of gains on the Nifty index. While this correction may signal an intermediate top in the market, it is also possible that we may witness a U-shaped or V-shaped recovery in the coming weeks. However, it’s worth noting that several sectors have shown signs of damage, suggesting a potential cool-off period in the near future.

Sectors of the Day . . . .

Reading Time : 3 Minutes