Question

Consider the investment project if you were going to invest in some stocks since covid 19: What was your investment strategy? What assumptions was it based on? What did you learn? What do you wish you had known earlier?

answer with around 100-150 words

Answer 1

If I were to invest since covid-19, I would have invested into stocks which were growth-oriented and which were highly valued.

My investment strategy would have been to buy into growth stocks which are trading at a higher premium than the market and sell them higher, because I have a growth oriented investment strategy which is not focused upon the value based investing. My investment strategy was certainly aggressive which were based on buying high and selling them even higher.

It was based on the assumption that the company which are leaders of their respective industries today, would be leaders of respective industry tomorrow, so the leadership would have to be maintained and the premium would be even widening, so I would have wanted to capitalised on that premium and invest on to those growth stocks.

I learn that markets are not always predictable and they do not have any predefined criteria to move up or move down so the risk has always an important place in the market and the diversification must be done in order to hedge the portfolio from such risks.

I wish that I would have known diversification of portfolio and hedging of portfolio and allocation of my portfolio into different asset classes in order to maximise my gains and decrease my losses.