Views on Life & on Equity Investing

Wonder, Wealth & Abundance

No pain, no gain

with one comment

For a very long term buy-forget-and-hold investor its unlikely that gains accrue without a drawdown. I have shifted MFI investment in India to NBFCs, Home Loan and Gold Loan companies. Instead of selling Satin at 700+, more than double my purchase price or continuing to hold in the mayhem, I switched to above three type of companies at ~400.

Manish Dhawan actually called the right day and time when Satin bottomed at 323 on the 21st of November. Good call!

Many a long term gains have come with big draw downs. There is another position where I am down 35% from my buy price but I continue to buy without chickening out, i.e. NSE Kenya. You’ve got to be careful with financials (leverage), I lost 100% of my holding in the 4th biggest UK bank, Norther rock in 2008.

See the Apple and Amazon drawdowns, stocks that returned 252 and 388 times respectively.

aapl_drawdownaapl_drawdown_tableamazon_drawdownamazon_drawdown_table

 

Written by amitdipsite

November 25, 2016 at 5:24 am

Posted in Uncategorized

One Response

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  1. Dear Amit,
    Grt post and surely a booster for me.. already opened account with Nairobi Stock Exchange (NSE) and was thinking of buying NSE but was not sure abt entry price. After dis i made up my mind of entering into NSE. Anything else you r looking at or liking it.
    From india pt of view planning to enter REC and PFC but only issue is unable to time it as have feeling that indian mkts might go down.. Any advice here plz..
    Thanks for your guidance as always..

    yogeshbhanushali

    November 26, 2016 at 4:06 am


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