A smart fund manager puts money on what he believes are the best investment ideas today that will play out in the next 3-5 years. After that he would not sit back, and wait for the next 3-5 years for the expected outcome. The best fund managers assess and re-assess their holdings every day and make changes in the portfolio in favor of better ideas – professionally and dispassionately, even if it means correcting a mistake quickly after it is realized as one
Every now and then we should assess the investments that we have done directly in stocks or real estate (other than our place of living) – completely dispassionately!
Sell that share if it doesn’t make sense anymore to hold, even if it has not achieved that “target” price level. Consider today’s price and not the cost price when you had made the investments
There are so many people who do not come out of real estate and other such investments made by them directly, just because they are sentimentally attached to the investment and the target exit price
Yesterday’s cost is just a figure, it is today’s market value that matters and what matters most is tomorrow’s opportunity
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