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The unconventional & non-bookish side of Investing:
Few findings over our a decadal experience in the markets 1/n
The unconventional & non-bookish side of Investing:
Few findings over our a decadal experience in the markets 1/n
Price is not God. But nothing less than God.
2/n
2/n
Being contrarian is sexy. But you can't build an entire portfolio of contrarian bets & hope to beat the market.
3/n
3/n
Price follows Fundamentals. Also in most cases Fundamentals follows the Price (especially in Banking & Financials).
4/n
4/n
Two sentenses that made most of the losses (actual & notional) to the investors:
"The bad news is already priced-in"
"The growth is already priced-in".
5/n
"The bad news is already priced-in"
"The growth is already priced-in".
5/n
High Valuation is a good problem to have, when compared to the comfort of Cheap Valuation. There is a reason for it. Respect it.
6/n
6/n
Madness of crowds is overrated. Wisdom of crowds is underrated.
7/n
7/n
Deep Value investing works the best in Text books, not so well in real markets. Don’t expect that the Rs. 100/- note on the street is ONLY visible to you.
8/n
8/n
Accepting the fact that Quality comes at a cost. If Almond is selling at the rate of Peanut, then most probably that is not Almond. Don’t be the Patsy.
9/n
9/n
If there is an earth quake in a stock better run from there, than to stay and analyze the impact on richter scale.
10/n
10/n
Measuring Corporate Governance is not about Low PE or High PE - Its about if the Balance sheet is a Piece of Paper or a Tissue Paper.
11/n
11/n
Quality without growth is like brand new Rolls-Royce without engine. If Growth comes back to Quality, then it demands your attention.
12/n
12/n
It makes sense to onboard a running bus (trend) than to get into the bus & wait for the driver to come.
13/n
13/n
Getting way too early into the trend is as bad as getting too late into it.
14/n
14/n
The longer a perception survived, the stronger it is. Do not try to prove it wrong, it will be very costly. Respect the perceptions & look out for exceptions.
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