Sunday, June 21, 2015

Welcome



Hello and welcome to my blog.

I thought I'd write this post to introduce myself and outline what this new website will be about.

Who am I?

Contrary to what my friends tell me, I am not a robot that is becoming self-aware. My name is Gogi Grewal and I'm from Vancouver, BC. I wrote a brief bio about myself and my personal investment journey. Please be sure to read that in the About page.

What is this blog about?

Investing. I know this topic is highly broad and often intimidating, confusing and downright boring. But my goal is to simplify it by discussing only relevant areas in plain English. There will be the odd post that will be heavy with numbers, put I promise to keep that to a minimum.

Here's a brief outline that I have in mind for this blog:

  • Basics - Any discussion on investing needs to start with a solid foundation. I will discuss the power of compound interest and why you need to start investing immediately, the concept of risk, the 5 major asset classes, and the myriad of investment products available today.

  • Human behavior - This is a very important area of discussion. When it comes to investing, our lizard brains really are our own worst enemy. How often do our emotions cause us to buy and sell at exactly the wrong times? What is happening in our brains when we gain and lose money? Behavioral biases such as anchoring, herding, and the disposition effect contribute to the markets being less than efficient. We will show this with examples from history.

  • Strategy - If markets are not efficient, what is the best way to actively invest? While my focus will be on momentum investing, I will describe other types of active strategies (eg. value, macroeconomic, charting, etc) to show why momentum stands out from the pack. I will also discuss back-testing basics and the importance of simplicity and diversification in investing. 

  • Execution - This is everything that comes after developing a sound investment strategy. It includes: the importance of self-discipline & patience (arguably the hardest part about investing), tuning out the news, minimizing costs, selecting an online broker, tax tips, and useful software & websites. 

You can also get a sense for what this blog will be like by looking at my bookshelf page.

Is that a typo in my blog name?

The word "Sharpe" comes from the term "Sharpe Ratio." This is simply a measure of an investment's risk-adjusted return and has become a standard measure in the financial industry. So our name Sharpe Returns is just some clever word play :)

Finally, why did I start this this blog?

This is a place to organize my thoughts, keep a diary of my continuing investment journey, record any good articles and books I find, and hopefully provide value to my readers along the way. As this is a brand new blog, I welcome any feedback on ways to improve it.

Thanks for visiting this site and hope you enjoy it.

-Gogi

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