Are you concerned more about what others think about your portfolio?
Or are you actually investing to make money?
In other words, you think its cool to tell your friends that you own shares of that happening coffee chain. Or that company’s shares that has those trendy hotel rooms.
Yes ! That is a common mistake a lot of us make when we invest in the market.
If I recommend a ‘not so cool name’ of a company to invest in to someone, he sometimes gives me an embarrassed look as if saying
‘Do you really think I will buy such a funny sounding name in my portfolio?’
I remember investing in the IPO of ‘Cafe Coffee Day’ in 2015 because I felt it would be cool to invest in a company owning a happening brand. Today its share price cannot even get you a cup of coffee !
When Jet Airways collapsed, a lot of my friends suggested I buy its shares because they believed such a huge airline ‘could never die’.
I recommended my brother to buy shares of Gitanjali gems in early 2000s because owning a diamond stock felt so cool. This stock has got delisted since April 2019 and was last traded at a single rupee !!
In the early 2000, any stock with name ‘Infotech’ was like a shooting star. So many companies got listed with the ‘Infotech’ tag attached to them without having any IT business. The ‘Y2K’ bubble, as it was called finally burst taking down with it thousands of investors with their hard earned money.
In the early years of the millenium, ADAG group companies were always in the limelight. Any public issue (IPO) with the Reliance tag was a lottery.
It was with pride that shareholders held shares of Reliance Communications, Reliance Infrastructure. RCom shares touched 800 in 2008 ! Reliance Infra reached dizzying prices of 2500 in 2008.
Imagine a small investor buying at that price then !!
Today RCom trades at about Rs. 4 per share and R Infra at 105 now.
We all have been a victim of wrong investing because we have bothered more about what others will say about your holding.
Have you ever been a victim of this?