Individual Investors have huge advantages…
When you speak to fund managers – especially working in big fund houses, you realize that some of them are jealous of us as individual shareholders!! Let us look at some of the cribs from a guy I met recently:
– individuals do not have to deal with trustees and directors (absolutely true: In this country of financial illiteracy, this is to be seen to be believed)
-you have no obligation to worry about quarterly NAV. Worse, some sales guys come rushing to the FM on a daily basis if the fall in Nav is greater than the market fall.
– you can stay on in LMW and MRF as long as you want, but it does not meet my liquidity norms..
– if you sell a bank share you can buy a power stock, I have to maintain my ratios
– you can move to an all cash portfolio, I cannot.
– you can have a concentrated portfolio or a diversified portfolio
–
moronbuffett
Let us look at some of the cribs from a individual investor guy I met recently about fund managers:
– you do not have to deal with spouses and their relatives
– you have no obligation to worry about my investment returns
– you can play with other people’s $ in millions and billions. i can’t
– you can stay on in BMW or Mercedes A class as long as you want, but it does not meet my emi norms
– you can move to an all cash portfolio and disappear overnight. i can’t
Sri
@moron….
Wow, you have such great insights, now you can start your own blog!
Devadatta
On the line of Peter Lynch.
Surya
Subra, You have left one bullet empty above. I want to add one…
– You can have bad performance of your portfolio & no one to question you
but yourself & if it is me than ……