Investing is different for different people. Everyone tries to be different in their investing style so that they can earn the maximum. Now someone earns big as well as someone loses big but the game is played by all. For me I have been playing this game for a while and while I am a conservative investor I try to invest differently to see of something comes good.
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Like I have invested in the ETF shop in which I invest when the ETF is down and sell it with 6% profit. This has given me a profit of 17% which is a great returns. The good thing about this strategy is that I am getting regular profit from it and rather than investing a whole I am booking profit at regular intervals. I feel profit booking is great because then you can actually see the profit rather than waiting for it to gain a lot.
Now today I came to know about the Losers Portfolio. This portfolio makes you invest in those company whose shares has gone down by 30% to 50% in last 1 year. So you will invest in those shares. Now this is totally different than convention investing because mostly people say that you should not invest in those companies which has been fallen.
But when this portfolio has been run over a period of 9 years it has given a return of around 41% which is by far outperformed the Nifty 500. At the same time Nifty 500 has given only 24.5% by the 9 year period.
The catch in investing lovers portolfio is that you will invest in more than 30 shares with equal amount and only those company whose market cap is over 1000 Crore. In this way you are not investing very low cap company. This return is huge because in those 30 companies, some companies have given almost 5x to 10x returns and thus you get those staggering returns.
It is very hard to find those stocks so investing in these 30 stocks gives you that stock which can give that huge returns. So yeah if you are OK to take risk then you should invest in lovers portfolio.
