In the early stages of the pandemic, I began finalizing my approach to investing that I've used for a few months now. I categorize into sectors, classes, undervaluation, and qualities based on company fundamentals, and I found that, for me, this works well to separate undervalued opportunities from one another.
The fact is, there's always undervaluation to be had in the market in some shape or form. The trick is to decide what to go for in terms of risk, allocation, and other factors. One thing I noted, especially during 2019, is that it's not hard at all to be lead astray by siren calls of higher returns in exchange for a higher risk - and the resulting portfolio allocation into comparatively undesirable alternatives in the long term is one thing I'm handling even today.
So, for me, change was needed. My approach, while comparatively simple, brought exactly what I needed, and I began following it with increasing focus as things grew worse. Today, I strictly follow that approach when investing, on both a weekly (where I currently do most of my buys) and longer investment frequency.
The approach has already paid off, as I see it. Rather than investing in comparatively risky alternatives with higher yields, I've focused on only qualitative companies with excellent credit ratings, moats, and safeties which all score a very high score/class on my list. The capital appreciation of these investments alone has outpaced broader indices in the short term and put me in a very comfortable position as to how to move forward.
The only thing I regret is, in fact, not pushing deeper at the time. We may all kick ourselves for that, but if you're like me and don't believe we'll see a retesting of the March 2020 lows in the near future, you're probably
