I’ve not talked much about stock picking so far. This is partly because I have no expertise in picking stocks, which explains why I prefer a ‘boring’ diversification strategy to active stock selection. Over the years, diversification has served me well as a risk management tool. It has certainly relieved me of the pressure of constantly trying to find winning stocks like those of Apple or Amazon. Of course, by not picking stocks, I miss out the highs and honestly, I do feel stupid when friends tell me that this or that stock they bought beat the market hands down.

By and large, I’ve come to terms with such scintillating stories, reasoning that luck may have a big part to play in their out-sized returns; after all, how many Warren Buffetts or Jim Simons do we know? Perseverance in the face of losses is crucial too. What is the use of saying