It’s that time of the year again for reflections and resolutions. How did your year go? Okay, that’s too broad a question. Let me rephrase. How did your investment plans do? Does it look like you will end this year with regret over missed opportunities? Or much rejoicing over capital gains? Or with equanimity and thankfulness? I chose equanimity and thankfulness trying my best to be calm, composed and thankful for whatever has transpired during 2017.
Did I have any regrets over missed opportunities? That’s actually a silly question to ask, even without looking about at the meteoric rise of bitcoin. At the same time, true investment is about sticking to a tried and tested philosophy, and despite never having dipped my toes into crypto-this or crypto-that, I am glad I stuck to my investment philosophy, which is to hold good stocks through thick and thin and not getting distracted by side-shows.
Do I have reasons to rejoice? Certainly. In fact, a couple of stocks in my portfolio deserve an oscar or two for giving total returns of well over 20% in 2017. At the same time, what’s there to rejoice over paper gains? I love dividend payers, which includes practically every stock in my portfolio. If I sell, there will be no dividends. And if I don’t sell, all gains remain paper gains. The best course of action I reckon is no action at all. These stocks are welcome to stay in my portfolio as long as they are well run.
A belated Merry Christmas to you, dear readers and a purposeful new year ahead. This will be the last blog of this year. But, to quote Arnold Schwarzenegger (aka the Terminator), “I’ll be back.”