Investor loses ₹20 lacs in 11 days, shares 5 tips for ‘aggressive’ investors

Market


Sharing his story of losing money in the current stock market volatility, investor and founder of Augment Capital Services LLP Anand K Rathi said that he lost about 20 lacs in just eleven days as an investor as he has a single stock portfolio which has been on a downward spiral.

In a LinkedIn post on Thursday, Anand K Rathi said “2023 hasn’t started on a good note for me. I have already lost over Rs.20 lacs in 11 days as an investor. For those who know me closely, I have a single stock portfolio. The one stock that I have had for a long time is Bajaj Finance and it’s on a downward spiral.”

Here are the 5 things you should know if you are an aggressive investor, as per Rathi:

1. Be ready for heavy drawdowns: I am an aggressive investor. While everyone enjoys the upside being aggressive means seeing heavier downsides too. This is the 3rd time in my investing life with Bajaj Finance that I have lost over 20%. If you are someone who invests for aggressive returns be prepared to see your capital erode.

2. Invest with conviction: Do not, I repeat do not invest basis tips or suggestions. You can invest basis of someone’s tip but cannot borrow his conviction. Always take time to convince yourself before plunging into the asset class. If you use the services of an advisor, ask tough questions before you give your hard-earned money to them. I have written a post on how to choose a financial advisor. The link is in the comment section.

3. Sell and forget: There will be a time when you will start feeling that the asset is overpriced or is no more worth your money. Just sell and forget. It’s quite possible that the prices shoot up post you sold but don’t repent the decision. Take the sell action after thorough analysis and once sold watch out for the next big opportunity.

4. Don’t hold onto losers: We are humans and we will make mistakes. If your investment thesis was flawed or wrong or you sense that the management isn’t delivering just exit. It shouldn’t matter even if the asset or stock is bleeding money for you.

5. Prepare to buy at a higher price: If your investment thesis is proven and the price of the asset or stock has shot up don’t shy away from buying at higher prices. For all you know, the prices will trend higher and higher if you spot a gem. India is one such shining gem. Go ahead and keep buying.

“And finally, did I lose my sleep over the loss in Bajaj Finance, not at all. I have made a lot more than I have lost and am happy to hold off till my thesis is valid. Disclaimer: Not a recommendation to buy Bajaj Finance,” he added.

 


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