I would not be doling out stock tips or hyperventilating the overused quotations & investing methods preached by great investors like Warren Buffett, Benjamin Graham, Peter Lynch, etc. It is very easy for first-time investors to be allured by the stories of how these investing greats have managed to generate extra-ordinary returns by simply following common-sense investing practices. The subtext for most of these inspiring stories is that if you also follow these methods, your road to financial nirvana is assured. What these uplifting stories fail to emphasize are:
- It is incredibly hard to generate higher returns (i.e. > 1-2% than corresponding index returns) over a sufficiently long period of time (i.e. > 10+ years)
- The opportunity cost of generating market-beating returns: You may experience a much better payoff for your time by devoting more attention to your regular job, spending time with your family or pursuing some hobby
- Ironically even Mr. Buffett & Mr. Graham recommend Index funds for most investors but very few people talk about that
With this background, the primary focus of this blog would be to address the most pressing questions & concerns encountered by an average investor during his/her investing journey. So the emphasis would be on the proven & enduring concepts in the areas of Asset Allocation & Portfolio Management.
As in the case of eating, everyone knows that eating nutritious food is the right thing to do but very few people do it all the time so to satisfy that perennial desire of gambling & outsmarting other investors I will also discuss some active investing topics ocassionally to spice things up.
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