Irony of taking higher risk is like the law of economics ‘Law of diminishing marginal utility’ Reward of taking incremental risk shrinks as more and more people move to take it.
Someone incurred loss in an investment doesn’t mean it was bound to happen, and the fact that something didn’t happen doesn’t mean it was unlikely. A healthy diversified equity portfolio, loss may be at the time portfolio is valued and time it is held.
It required a skill to understand risk associated with a product or an asset class!! A skillful investor knows; a) how much dependable an investment is and hence suitable. b) how much price is one paying to acquire value at a given time.
#investors behaviour In investing, it is fallacy to believe that idea is good only when it makes profits!! In reality, price of an investment can monkey in directions quite contrary to its fundamentals, values or even expectations, over short run…
#InvestorsBehaviour To achieve superior investment result, one has to hold a non-consensus opinion, regarding market and its value. These have to be accurate – it is not easy, in fact it is not suppose to be easy..