The London Investor

FUNDAMENTALS!

The other day, a good friend of mine said, ‘this is strange, seeing the market in red for so many days’. I understood what she was trying to convey. It's been long since we had a good day at the investment market. Me, being a captain of the ship of set of a new investors in my investment community, the London investor, had to face such expression of frustration in daily basis. So I told my friend this; “It is not a strange thing. This is how it has been over the past few decades. May be your picks need some more time to bounce back? Or, you need a serious review on your holdings. Either way, you will not go wrong in the long run, if you have enough confidence in the companies that you have invested in. Always check the fundamentals to see if any of those have changed. Do understand who actually decides the share price of a particular stock. Research on how much this stock would be worth at the end of your investment period. List out all of the catalysts you come across whilst you put this together. Set a time frame: set your price movement expectation for those catalysts. Have your exit strategy in written form. I think this would show you a clear path. Don't you think?” She didn’t say anything for some time. I thought I impressed her. Job done, right? Or at least that’s what I thought. But, after a long pause, she said “OK, after I did all that what you asked me to do, What if the trading 212 does something that works against our stocks?”