9 investing lessons from 2009

1. Equities are always wealth multipliers, come what may, as long as your investment decisions are fundamentally sound, you have enough patience and are not too greedy.
2. When stock markets fall, they tumble. When they rise, they crawl, leaving little clue if a rise is real. So, when you believe the market has upside potential, just invest.

3. Your wait for the market to fall to an investible level will never end. In other words, when you want to time the market, the time is never right.

4. Even in economic slowdowns and market downturns, there are winners. It all depends on your ability to spot them. These are always fundamentally strong stocks.

5. You get to buy an ICICI Bank stock at Rs 325 or an RIL share at Rs 1,200 (Rs 600 at present prices) very rarely. So, when you get such an opportunity, you should grab it.

6. You can’t always invest in an IPO blindly. It’s not always a win-win deal. The promoters are as greedy as you are and they can fleece you too.

7. SIPs are great instruments for mutual fund investment and are always rewarding. Only that in a rising market, they often under-perform non-SIP investments.

8. A drop in real estate prices is like a mirage. You see them falling, but what actually happens is that they plateau and you get used to the prevalent priceline.

9. You have always ignored the goldmine in agri-commodities. It’s only in hindsight you realise that you have missed another chance to get a windfall this year too.

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