Important investing lessons from 2022

New York: Goldman Sachs Chief Executive, David M Solomon saw his 2022 pay slashed by nearly 30 per cent, following missteps that have weighed on the elite Wall Street bank’s profits and performance, the New York Times reported.Solomon took home USD 25 million last year, the bank said in a filing Friday, down from USD 35 million a year earlier. Solomon ceded his title as the highest-paid bank chief executive to Jamie Dimon of JPMorgan Chase. —ANI

CENTRE ASKS GACs TO LOOK INTO COMPLAINTS

Investment Lessons From 2022

With the worst of the pandemic behind us, we all started 2022 with hopes of bluer skies and back to our beloved “normal” days. Little did we know that the black swan sightings will become the new “normal”.

First, crazy high inflation, then war, Fed rug-pulling the stock markets, energy crisis, and then cryptos crashing down, 2022 has been anything but normal.

A wave of bad news kept bombarding us throughout the year.

And unfortunately, we will be carrying pretty much all the concerns of global economic uncertainty, war, supply chain issues, inflation, and higher interest rates into the new year as well. This year has been tough for a large number of retail investors, many of whom only started their trading journey at the height of last year’s bull market run.

New Delhi: The Centre has notified three grievances appellate committees (GACs) to address users’ complaints against social media and other internet-based platforms. It says each of the three GACs will have a chairperson, two whole-time members from different government entities and retired senior executives from the industry for three years from the date of assumption of office. The step is part of the tighter IT rules, notified in October 2022. —ANI

LOOKING TO CUT

As we step into the new year, it’s a good time to reflect back and learn some investing lessons that are hard to learn without actually experiencing them firsthand.

Here are seven investing lessons from 2022 that I learned this year that will, hopefully, help you as well.

LESSON 1: WHAT GOES UP MUST COME DOWN, & RISE AGAIN

me of a quote from a popular author Robert Greene – “Learn to use the knowledge of the past and you will look like a genius even if you are really just a clever borrower”. If you looked at the past performance of these IPOs, most of them did not have a single profit-making year. Yet they were valued at 30-40 times their sales. While I agree that for some stocks past records may not work in the future, they are more of an exception than the rule.

LESSON 6: DO NOT IGNORE DEBT

Investors often ignore debt instruments such as bonds, and debt mutual funds when there is a boom mentality in the equity markets. During (and post) Covid-19 a large number of first-time Indian retail investors migrated from investing in FDs into equities.

COSTS,

GOODYEAR TO LAY OFF 500

Equity markets are inherently volatile and may or may not give high returns every year. Nifty 50 was up just 3.2% and if adjusted for inflation, real returns from equity were negative in 2022. In case you had a 1-year goal, very likely you would have not been able to meet it had you invested entirely in equities.

Akron: Goodyear Tire and Rubber Company said it will cut about 500 jobs, which is about 5% of its total workforce, in its aim for cost-cutting, the Wall Street Journal. According to a statement released on friday, the company had also warned that fourth-quarter results fell below expectations as the elevated inflationary environment decapitated demand.In a statement, Chief Executive Richard Kramer said that earnings were disappointing “given a significantly weaker industry backdrop, particularly in Europe.” Goodyear is set to report earnings for the fourth quarter on February 8. —ANI

RATIONALISE, SIMPLIFY TAXES:

USISPF TO INDIA FM

So, one should invest in equities only if you have a longer time horizon and have the risk appetite to withstand the volatility.

But do not put 100% of your money in equities, ever.

LESSON 2: KEEP INVESTMENTS SIMPLE

Do not complicate your investments and invest only in things you understand. Do not give into “hype” and stick to the basics. About 115 million Indians invested in cryptos so far. These are highly risky and unregulated investments and one should only invest keeping the risk-reward ra-

G20 India Presidency

tio in mind. Bitcoin is down about 65% and other tokens and coins are down much more. Take out time and understand your investments and be wary of internet hype or stocks that skyrocket overnight.

LESSON 3: KEEP EMOTIONS ASIDE

Ups and downs in an equity market are inevitable. However, panic selling when markets crash is one