Getting Ahead of S&P
For this year, I hope to benchmark the gain with S&P which is up 15% YTD. My portfolio is doing slightly better at 17% beating the S&P by a small margin. So far the gain is encouraging but hopefully by end of the year I will be able to beat the S&P with a much bigger margin.
My 17% gain comes with a lot of patient riding through the up and down cycles of the market. Stock market does not work in a linear manner and I believe that good stocks will be able to ride the wave and stay above the market trend. Good stocks can withstand the worst market conditions so I do not need to spend a lot of time to manage them. By good stocks, I often look up to those that are market leaders with wide moat to stay ahead of the competition. Other than that, they need to have a lot of upside with wide range of opportunities for growth. I will hold on to these kind of stocks for long term for many years if the conditions stay the same.
On the hindsight, I do own a few stocks that are currently in loss. Luckily they only constitute a small part of my portfolio. I expect some of them, especially INTC to stay negative until the end of the year. I don't normally average down particularly when I see that the company is struggling to keep up with the competition. It is important to follow and keep ourselves up to date on the fundamental of the company and understand the reason of the fall of the company stock. We will have to accept that we made a bad decision when the downside is caused by the company itself.
My 17% gain comes with a lot of patient riding through the up and down cycles of the market. Stock market does not work in a linear manner and I believe that good stocks will be able to ride the wave and stay above the market trend. Good stocks can withstand the worst market conditions so I do not need to spend a lot of time to manage them. By good stocks, I often look up to those that are market leaders with wide moat to stay ahead of the competition. Other than that, they need to have a lot of upside with wide range of opportunities for growth. I will hold on to these kind of stocks for long term for many years if the conditions stay the same.
On the hindsight, I do own a few stocks that are currently in loss. Luckily they only constitute a small part of my portfolio. I expect some of them, especially INTC to stay negative until the end of the year. I don't normally average down particularly when I see that the company is struggling to keep up with the competition. It is important to follow and keep ourselves up to date on the fundamental of the company and understand the reason of the fall of the company stock. We will have to accept that we made a bad decision when the downside is caused by the company itself.
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