The Core Report #738 "Stop Loving Your Stocks" Devina Mehra on the Biggest Investor Mistake | The Core Report
Nov 29, 2025
Devina Mehra, founder and CMD of First Global, shares her extensive investment insights. She warns against the emotional attachment to stocks and emphasizes the critical need for risk management and data-driven decisions. Devina discusses the dangers of IPO frenzies, small-cap euphoria, and how missing just a few key market days can devastate long-term returns. She also explores the importance of global diversification, the unique challenges of AI investments, and offers practical tips for building resilient portfolios. Perfect for navigating India’s evolving market landscape!
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Small-Cap Euphoria Often Ends Poorly
- Small-cap euphoria preceded an almost 80% fall in past cycles and many listings later become illiquid or worthless.
- Devina notes hundreds of 1990s IPOs stopped trading, showing buy-and-forget can hide failures.
Use NFO Clusters As Froth Signals
- Watch for clusters of new thematic funds (NFOs) as a signal of peak froth in that theme.
- Avoid buying themes when fund launches cluster and public enthusiasm peaks.
Human + Machine Reveals Unloved Opportunities
- A 'human plus machine' system reduces bias and forces data-driven investment choices.
- Systems spotlight unloved sectors earlier than human-driven consensus, improving discovery.
