Making mistakes is part of life, it could be useful to make mistakes. Especially if they teach you how do better in future!
What was my main mistake last year?
Well I followed literally the "buy and hold forever" of Buffett's speeches, and I stayed in the market with my position, just changing a little bit some of the most aggressive to some less aggressive in order to fall down with a Beta not too far by 1. That means more or less as the main index. An higher beta of your portfolio means that you will move faster than your benchmark.
Keeping the positions was good choice because I strongly believe in my asset allocation and all the companies I suggested last year they are still wealthy and doing fine even after the crisis. None of them failed :-)
The problem is that at the end of the bear market cycle it will be great to have a lot of cash to put in stock investment because the recovery we will see in next years will be strong and will give us a lot of satisfactions. My only regret of this crisis is to NOT have a lot of cash in my portfolio to allocate in investment now, that they are trading at P/E so low and when you can see bargains all over!
So, please, learn by MY mistakes and NEVER stay without a good amount of cash :-) Cash is King, another Buffett’s quote.
What was my main mistake last year?
Well I followed literally the "buy and hold forever" of Buffett's speeches, and I stayed in the market with my position, just changing a little bit some of the most aggressive to some less aggressive in order to fall down with a Beta not too far by 1. That means more or less as the main index. An higher beta of your portfolio means that you will move faster than your benchmark.
Keeping the positions was good choice because I strongly believe in my asset allocation and all the companies I suggested last year they are still wealthy and doing fine even after the crisis. None of them failed :-)
The problem is that at the end of the bear market cycle it will be great to have a lot of cash to put in stock investment because the recovery we will see in next years will be strong and will give us a lot of satisfactions. My only regret of this crisis is to NOT have a lot of cash in my portfolio to allocate in investment now, that they are trading at P/E so low and when you can see bargains all over!So, please, learn by MY mistakes and NEVER stay without a good amount of cash :-) Cash is King, another Buffett’s quote.
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Hi!
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Regards,
Dorcia Wellington
Cash is king if your a money enter bank.
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