Late to the Bull Run? Don't Follow the Super Investors
mutual fund fact sheets to see whether your favourite fund manager has entered a new stock, or perhaps increased weightage in any of them. If they have, you’ve got action to take. Fourth, just like with mutual funds, you have taken to tracking trade data of large global funds that have taken a liking to India.
The buzz about such deals is almost live, though full details come end of day. But there’s a lot of activity, possibly throwing up quite a few stock names for you to consider investing in. Last, but not least, your potential investment universe has increasingly shrunk in size.
And I am not referring to the number of stocks here. But the size of companies you are looking for to invest. The smaller the company, the better.
Incidentally, a lot of super investors too operate in this space. How accurate is my guess? (If you would like to tell me what you agree with, and what you don’t, drop me a line at ContramoneyIndia@gmail.com.) My gut feeling is that while not being 100% right, this somewhat hits the mark. As a seasoned long-term investor for over 25 years, even I can’t but help think on these lines sometimes.
Why? Purely because so much of the news flow, the breaking alerts, the TV interviews et cetera encourage this line of thinking. One literally needs to have a mental model in place to ensure one does not fall into the trap of this kind of thinking. Now, we have been around for far too long to judge which approach to investing works best over the long term.
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