Wednesday, May 17, 2006

Post No. 7 - Notional wealth, real unhappiness

I have been through two bubbles and busts in stock markets, and must admit, I believe I am wiser for the same. I have become what I think classifies as a 'contrarian' investor. I have made quite good bets in the past few years, value picks, completely ignored and exited them when the time was right.

I believe I am fairly mature to handle the troughs (or the crests) when they do come. I had invested in a stock called HTMT at 3oo approx in Jan 2005, and exited from it in April 2006 at 560. For me beyond 560, the stock was risky and the upsides should have been rationally limited.

Today, on 17th May the stock is at 800....I still think my rational decision was wise, the sword could have cut either ways, its just chance that it cut in the direction which was opposite to the one I chose.

Brave and rational that I am, I still could not help feel slightly depressed that I could have enchanced my portfolio by over 30% in just the matter of 45 days. My objective mind tells me, I did perfect, I exerted my safety heart, my emotional side does not seem to quite understand. It feels the pinch.....I also wonder, is this what they refer to the difference of 80:20 in terms of making the right call.....did I call too soon.

I feel so humbled, so weak.....for all the garbled shit I spew around discipline and investment theory (which I did actually practice), my heart is not brave enough.....I still have a long road ahead towards becoming even a baby image of the Sage of Omaha.....

Time will tell, I hope I get there someday......but I know the answer.....I know the answer......and I won't say it loud......and I am sure it won't matter in the end.....for in the long run, there is only one truth, we are all dead (Keynes).

Related Posts by Categories

Widget by Hoctro | DreamyDonkey

No comments: