Reblog: Investing is practice of bottom-up stock-picking
Investing isn’t, and can’t be, about soothsaying market levels or about technical `timing’ of the markets. It also is not about finding that next new `wave’, `mega theme’ or `grand’ strategy; nor is it about dwelling on national or global economic macros.Investing remains a simple, rather dull and boring, uncluttered practice of bottom-up stock picking, with painstaking efforts and arduous discipline.
The rest are popular sports, meant for amusement, occasional applause but not for adoption. If the investing skills were to degenerate to mere predicting of market levels and, hoisting the investing boat just at the right point of time such that rising tide lifts the boat, it would have been an embarrassing branch of knowledge. But fortunately , it is not.
Capital preservation and capital appreciation remain the pillars and cornerstone objectives of a good investing philosophy. While both are almost equally important, preservation precedes appreciation. That precedence has a telling effect on investing philosophy and strategy conceptualisation.