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In this video, we delve into the Loser’s Portfolio Strategy which was first proposed by Professor Aswath Damodaran in his book, Investment Fables and hinges on investing in stocks that have significantly declined in price. He noted that buying the 35 biggest losers from the previous year and holding them could yield a cumulative excess return of 30% over the broader market over five years.

To test this theory in the Indian market, I conducted a 10-year analysis, examining the performance of such portfolios against the Nifty 500. The study revealed a mixed yet promising returns with a simple buy-and-hold approach presenting a 38.5% return over the last 9 years. Ofcourse, one has to account for survivorship bias but still this unconventional approach to investing via the "loser's portfolio" strategy has demonstrated potential for significant returns.

👉 Suggested readings/resources:
► Investment Fables by Aswath Damodaran (book link): https://amzn.to/4ceZlU1

👉 Video Chapters:
00:00 Introduction to Portfolio of Losers Strategy
01:42 What is Loser’s Portfolio?
05:23 Implementation Steps
06:57 Portfolio Performance
09:41 Loser’s Portfolio (May 2024)
10:30 Key Observations
12:43 Long Term Results of Strategy

#losersportfolio #52weeklow #investingstrategy

Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links