Yeah, where’s your focus at…
…as your market drops.
Is it on your benchmark index?
Ok. Drops further. Developing into a crash…
Where’re you at now?
My focus has shifted.
Tell me more.
I’m now focusing on the shares i’ve begun to accumulate,…
…and, specifically, I’m focused on the number of shares being added to my portfolio,…
…that’s my number. Yeah, that’s where my focus is at.
Not on your benchmark index?
First up, I feel the joy as this number enters my demat. After that, I cast a brief glance at whatever benchmark indices I’m looking at, and decide for myself, whether my focus needs to remain shifted.
What if you’re rubbing your hands in glee, and dud shares are being added to your name?
That’s the whole point. These are not duds. They are gems as per due diligence done, and are going for the price of non-precious counterparts. That’s why my focus remains shifted.
When will it shift back?
That switch happens on auto. When benchmarks start oozing expensiveness, focus automatically shifts to the benchmarks. It should no longer be on the number of shares entering your folio, because shares should not be entering your folio when benchmarks ooze expensiveness.
Sure. Specific stocks could be cheap when a benchmark is expensive. Let’s not deviate from the point though. This is about a healthy shift of focus, and then a second – healthy – shift back.