Stock Picking - Popular vs Unpopular
Observations During My Week
I skipped writing last week’s post because of a weekend yoga retreat I attended. It was totally worth my time and money. After doing simple yoga for almost a year by myself, I learned more potent yoga practices from an experienced teacher. I already see a positive difference in my daily life.
On my roommate’s recommendation, I watched a video by a pick-up artist. This video just clicked in my head. I was not looking for advice on picking up women (I am more interested in quality of life in general). However, the information I took away from that video is a difference in attitude when meeting a person: “does the other person like me?” vs “do I like the other person?”. The former makes me feel self-conscious, wanting to please, nervous, like saying what the other person wants to hear, like I need something. The latter shifts the focus towards the other person, makes me feel like a giver, has no expectations associated with it. This is a very powerful advice that can apply to all my social situations. This is a necessary shift to experience a better quality of social situations.
Stock Picking - Popular vs Unpopular
When I am trying to find companies to invest in, I come across two kinds: ones that are favored in the stock market and ones that are not. Currently in India, almost all banking, finance and automobile companies are in favor whereas technology and pharmaceutical companies (which I am invested in) are not. Whenever I watch a news program focusing on the stock market, I have a FOMO on these popular companies. They are of course over-valued because of the growth expectations. Do I buy into it because the optimism can be true? Or do I focus on finding decently valued companies that have some growth potential (which are likely to be unpopular)? This is a question I am wrestling with recently. Whatever way I go, there will be regret on missed opportunity. Whatever way I go, my mental strength and patience will be tested. I will probably have stocks that fit into both categories (although right now I mostly own unpopular stocks). In two years from now, I will have good lessons from the decisions I make now.
