I Combined Stocks & Gold and Saw the Magic Happen - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

I Combined Stocks & Gold and Saw the Magic Happen podcast

Jan 7, 2021

Being a research analyst, I used to think that stocks are superior to all other asset classes, gold included.

However, I was in for a big surprise when I compared returns from gold with that of the Sensex. Not only did gold go up as much as the Sensex, it did so with much lower volatility.

This made me think whether investing in the stock market is as attractive as it is made out to be. It then struck me that it does not have to be case of either/or when it comes to gold and stocks.

We can combine the two in a smart way and benefit from the individual strengths of each asset class.

How good is the result of this combination and what happens when you combine a deep value portfolio of mid and small caps with gold?

I discuss this and more in this interesting video.

Do take a look.

Here's more on value investing:

Rahul Shah

Rahul Shah (Research Analyst), Managing Editor, Microcap Millionaires has led the team from the front in developing some of our most stringent and rewarding research processes. As per his own admission, the turning point in Rahul's life as a financial analyst came a few years back when he got introduced to the works of Warren Buffett and Charlie Munger. From Buffett, he understood the value of investing in good quality business with powerful moats and strong management teams. Charlie Munger on the other hand inspired him to be a lifelong learner and use mental models in order to arrive at the crux of matters across most disciplines. Rahul firmly believes that in order to be successful at investing, you have to do the big things right and possess a great temperament and a contrarian streak.

Equitymaster requests your view! Post a comment on "I Combined Stocks & Gold and Saw the Magic Happen". Click here!

4 Responses to "I Combined Stocks & Gold and Saw the Magic Happen"

yvsc chowdary

Jan 13, 2021

Great study Rahul. Appreciate the great effort put in the analysis. Since you are the mentor and expert for us, I request you to start a separate service for this combination. Nowadays its difficult to find good companies with long term sustaining power with P/E ratio between 4 to 7!
Regards. Chowdary

Like 

Ravindranath Padukone

Jan 11, 2021

Mighty Innovative Switching Logic!

Like 

Anand Chaudhary

Jan 10, 2021

Hi Rahul, It's an interesting perspective (based on past data) that you have presented. I've been using gold only from hedging aspect but the data you showcased over the last 16 years or so puts gold at a very good position to be viewed as a profitable investment in overall portfolio.

Like 

Girish Sanghavi

Jan 9, 2021

Great analysis.

I really appreciate your efforts and giving a different perspective. I really feel that this analysis should be combined with any of your services of MC or EP or DI could work wonders. What I suggest is a new product or modifying existing service.

I have always felt you should also follow STOP LOSS principle - i.e sell when you feel market is against and reenter when things are improving. This is a fusion of Value Investing and Street Smart concept. I think the returns record will improve by itself..

Honestly I find hard to stare at heavy RED nos in stock profits/ loss. Hence have not been able to take advantage of your services. Do examine and revert.

Like 
  
Equitymaster requests your view! Post a comment on "I Combined Stocks & Gold and Saw the Magic Happen". Click here!

More Views on News

How Did Mindtree Perform in Q4FY21? (Company Info)

Apr 20, 2021

Here's the rundown on the company's latest quarterly results.

Tata Dividend Yield Fund: Seizes Opportunities from High Dividend Yield Stocks (Outside View)

May 7, 2021

PersonalFN analyses the features of Tata Dividend Yield Fund and explains the potential this fund has to offer to its investors.

My Secret to Find Breakthrough Stocks (Fast Profits Daily)

May 7, 2021

I've used this trading technique for many years with great success. I'm sharing it with you today.

The Key to Profit from India's EV Revolution (Profit Hunter)

May 7, 2021

Stocks you must consider investing in before buying your first electric vehicle.

Axis Healthcare ETF: Seeking Capital Appreciation from Sectoral Exposure (Outside View)

May 6, 2021

PersonalFN analyses the features of Axis Healthcare ETF and explains the potential this fund has to offer to its investors.

More Views on News

Most Popular

Growth vs Value Investing

It's time to rethink value versus growth debate and the way to play markets in the coming decade.

Time to Buy Smallcaps? (Fast Profits Daily)

Apr 30, 2021

In this video, I'll show you why I favour smallcaps over the Nifty.

The Next Smallcap Winners (Profit Hunter)

Apr 30, 2021

Price is the only due diligence one might require to buy this business.

Sell in May and Go Away? (Fast Profits Daily)

Apr 28, 2021

Does the concept of selling stocks in the month of May, work in the Indian market?

This Fund Manager Has Taken the World by Storm. Will You Invest With Her? (Profit Hunter)

Apr 26, 2021

Should you invest with this Rockstar fund manager who has outperformed in a big way?

More

India's #1 Trader
Reveals His Secrets

Secret To Increasing Your Trading Profits Today
Get this Special Report,
The Secret to Increasing Your Trading Profits Today, Now!
We will never sell or rent your email id.
Please read our Terms

S&P BSE SENSEX


May 7, 2021 03:21 PM

MARKET STATS