Episode 52 - One thing in investing | Adapting Cricket’s Momentum in Investing
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In this episode, we explore the "momentum" factor in investing. Similar to a batsman in top form hitting successive sixes, stocks can exhibit winning streaks. This concept, rooted in behavioral science from the 1980s, reveals that stocks performing well tend to continue rising, while underperformers struggle.
Momentum investing involves identifying stocks with strong recent performance, often influenced by positive news or market trends. However, it's crucial to conduct thorough research into a company's fundamentals before investing.
Key tips include avoiding fads, focusing on consistent performers, and combining momentum with other investment factors for a balanced portfolio strategy. While momentum can enhance returns, prudent decision-making and understanding market dynamics are essential for successful investing.
Speaker - Shikha Sood, Head - Products
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