When not to ride momentum

Warren Buffett said, "Be fearful when others are greedy and greedy when others are fearful." But we often act otherwise and end up making hefty losses. And one of the most common reasons behind this is 'momentum investing'. Here is how the cycle of momentum investing goes: Phase 1: Institutional investors start investing in a stock. Stock gradually starts moving upwards. Phase 2: A few more institutional and smart retail investors make investments in the stock. The stock starts moving up ev

This article was originally published on August 14, 2019.