Originally posted by tarkeshwar This is an interesting and rather important thread. I have a qus. How is the experience of being 100% invested in the market been? Are folks able to maneuver successfully from defensive stocks (like HDFC) to aggressive companies, so as to exploit unmistakable "buy when others are fearful" opportunity now? If one's recurring income is much less than his stock portfolio value, isn't it hard to benefit much from opportunity like this? My learning now is that it makes more sense to accumulate cash during bull runs, "only" to invest when bad sentiments prevail for a stock. "only" is the operative word and probably the most important difference between legendary investors like Buffett and us mortal souls

The first time I invested in Equities it was in 2003 and I had a major portfolio of mine in the same and at that time I was a little bit nervous as that was my first time and many of my friends and relatives who had burnt their fingers in the dot com crash were horrified to see a "novice" like me investing a major portion of our cash in Equities and I was lucky that I  invested in the right time and inspite of the current carnage my portfolio is quite positive and the dividend yield is itself is more than what Bank gives me as interest and hence I have a downside protection .

Now is the second phase of my investment and this is my first bear phase and the experience is new for me .I am staying in 50% cash and 50% invested ( started investing at 12,000 levels ) .The current investments that I have made are for a min period of 5 years and treat it as a FD for 5 years .In the meanwhile I did make an investment in 2 Closed Ended Mutual Funds in Jan 2008 .They have a lock in period of 3 years .

Since I have zero debts , have source for regular income , having 50% cash and also with my "overall portfolio" quite positive I am not having much fear though I dread to think what would happen if the sensex goes to 7000 levels .

I evaluate my Investment performance  not based on what is the index level but how much better I have made compared to the same amount invested in a bank FD ( after deducting tax ) for a similar period .
And If I get the same result or less than the Bank returns then I am a looser and unfit to manage my finance .
If I get 5% more  results than bank FD then I am an OK Investor .(i.e 15% and above )
If I get 10% more  results than Bank  FD then I am a Good Investor .(i.e 20% and above )
If I get 15% more  results then Bank FD  then I am a Very Good Investor .( i.e 25% and above )
If I get 20% more  results then Bank FD  then I am an Excellent Investor  .( i.e 30% and above )
Based on my performance in the last 5 years I can say that currently even after this Carnage I an right now a Good Investor .I was an Excellent Investor in Jan 2008
I will have to see how I am by 2013 i.e I have a 5 year time frame for my evaluation .



Edited by valueman - 02/Nov/2008 at 11:16am

That post by me on 27th october 2009 seems to have given an good effect at that time

It was a letter from Geojit Head.

Now after a gap of 2 years I'm posting back though the market has not climbed it's peak of 21,000. I'm feeling the same as this thread i.e. Holding cash in Bull Market. This is no Bull market and the analysts seem fearful after 2008 beating. so they are " cautiously positive " to avoid risking their careers .