Building a Robust Stock Portfolio is a Myth

Building a robust stock portfolio  is like chasing a dream that never comes true. It is like finding the meeting point between earth and sky, balancing your greed and rationality , fear and triumph , finding a common thread between logical and illogical , emotion and detachment, loss and profit , stillness and response , being patient and impatient , picking up fast and slow, able to see long and short etc. It seek a balance between  almost all human behaviors and then only one can think of building a robust portfolio.  It is about diving deep inside the business and understanding more and more about the company and its future. There are so many determinants that it is sheer impossible to satisfy all parameters and then comes the emotion , likeness and longing for a particular stock or sector or business.

It only indicates that trying to build or construct such portfolio is almost near impossible. There are few wizards who may have achieved this but for a normal worldly human beings it is sheer impossible.

But that does not mean that you should not try it out. Yes , you need to take chance and assess your overall portfolio , profit and loss of the portfolio , not individual stocks. You will be successful in that. Keep churning, diversifying your non-performing stocks to those who have potential . By doing this you many pick up few that will outsmart the market and also your portfolio.Like a normal human being one needs to keep trying and look out for the relative fair value of a particular stock and then take a decision to in or out. It is an art like cherry picking and for that one need to keep practicing and believing.

That is the science of portfolio making, not get attached with the stocks and enjoy holding in your account but shuffle the dead one, slower one ......replace it with the living one holding the prospect of good future.