I agree with everything youāre suggesting @anon287192 and @ytsruh benchmarks are excellent BUTā¦
I was thinking about something that helps when the investor is feeling the white heat of fear, something that helps with the emotion/behavioural side. Ie ābenchmarkā me against myself but me when Iām not worried about the market.
Those are indeed good reads but my guess is that the many of the investors that FT wants to reach wonāt actually read any investing books and may not be too interested in whether their style is value, momentum or xyz. Maybe theyāll read some blog posts, or read here, and theyāll invest in what they want to.
To reassure you, Iām not scared that my stocks are going down But I do think that each of us has a degree of loss that would make us consider panic selling - we might not be aware of it until it happens though. Again, a guess.
Sorry to go off track with everyone else, but just had to add that I feel hariharās strategy of buying āgoodā companies when they are not at their peak only works in a gently rising market.
In a quickly rising market all companies appear overvalued, so when do you get to buy the good companies cheap?
In a quickly falling market⦠for example if harihar was investing in 2008 they would have woken up to days when their good companies were down 8% across the board after being down 6% the day before.
According to that strategy they would be piling in to buy all the great companies, and if thatās what theyād do then they are probably a very shrewd investor. But nobody was trying to catch the falling knives or buying anything because it felt like the end of the world.
Many retail investors who try to be Buffet just pulled their portfolios at whatever the cost and went to the bank to withdraw them in cash.