this blog is alive

The focus would be active Indian investing here, while substack would continue to focus on passive Indian and any global investing

I am tracking my investments using google spreadsheet, sample below

there is an issue with this.

it anchors me to price paid for the stock and I ignored if the stock is doing well or not relatively. The cost price bias has given me a false sense of comfort it promotes Endowment effect, I lose objectivity in analysis.

I posted this on twitter on BAJAJ Finserv

 

As an existing holder like me who is holding the stock from lower levels, because of way I track portfolio (cost price driven), I will miss that the stock has done nothing for last 3+ years

This approach misses the

• huge relative underperformance even against index, let alone other stocks
• opportunity cost of not deploying capital effectively

So I think we should listen to William O Neil and not track portfolios like this, here is what he wrote in his book

 

“To help you avoid the price-paid bias, particularly if you are a longer-term investor, I suggest you use a different method of analyzing your results. At

… Read the rest