Covid19 too will bring in many changes in the way we live and operate. Every crisis becomes a learning opportunity.
I couldn’t help but ponder on key lessons I have reiterated to myself as an investor. I am sharing them with you.
#1 Maintain a Distance from your portfolio.
#2 Sanitise your portfolio. Review and rebalance, regularly.
#3 First, Survive – Focus on capital protection, don’t step out of your risk profile. Ignoring valuations can become costly when investing.
Biggest of all, have a sizeable emergency fund!
I have practised most of them, mostly by gut and intuition.
I now need to codify them with specific rules. This is necessary to take the right action at the right time and not get carried away.
As you know, in challenging times, the mind can play a lot of games and make you do things, you won’t be proud of.
Those are my learnings.
What would you add?