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1/ Since I started investing in 2016, I've learned several things from many investors. I'd like to dedicate this thread to those who've helped shape my thought process when it comes to investing. Happy Teachers' Day!
2/ Warren Buffett ( @WarrenBuffett).
Free Cashflows ("Owner's Earnings") and the sustainability of those Cashflows ("Moat") is important. Ultimately, Value is just the Discounted future Cashflows of the business from now to kingdom come.
Free Cashflows ("Owner's Earnings") and the sustainability of those Cashflows ("Moat") is important. Ultimately, Value is just the Discounted future Cashflows of the business from now to kingdom come.
3/ Aswath Damodaran ( @AswathDamodaran)
Value is a marriage of stories and numbers. One should always be verified against the other. One without the other does not make sense.
Value is a marriage of stories and numbers. One should always be verified against the other. One without the other does not make sense.
4/ Charlie Munger.
Be a learning machine. Go to sleep smarter than when you woke up. Knowledge, like money, also Compounds.
Be a learning machine. Go to sleep smarter than when you woke up. Knowledge, like money, also Compounds.
5/ Benjamin Graham.
Margin of Safety is essential to investing. It takes away the need for being completely accurate with forecasts, which is anyway not possible.
Margin of Safety is essential to investing. It takes away the need for being completely accurate with forecasts, which is anyway not possible.
6/ Peter Lynch.
Companies are not generic. You can classify them based on how they operate and the kind of industry they operate in. This helps in understanding how you can analyze them.
Companies are not generic. You can classify them based on how they operate and the kind of industry they operate in. This helps in understanding how you can analyze them.
7/ Mohnish Pabrai ( @MohnishPabrai).
Maintaining a 'Not-to-do' checklist is handy. Even if you've done all the work necessary for understanding an investment, it helps to tick things off of a list before taking the final plunge.
Maintaining a 'Not-to-do' checklist is handy. Even if you've done all the work necessary for understanding an investment, it helps to tick things off of a list before taking the final plunge.
8/ Philip Arthur Fisher.
Getting feedback from the ground ("Scuttlebutt") is more revealing than looking at Annual Reports or Quarterly Results. What's happening on the ground influences what's going to happen to the Financial Statements, not the other way around.
Getting feedback from the ground ("Scuttlebutt") is more revealing than looking at Annual Reports or Quarterly Results. What's happening on the ground influences what's going to happen to the Financial Statements, not the other way around.
9/ Rakesh Jhunjhunwala.
Diversification may preserve wealth, but it's Concentration that builds it. Over the years, it's usually 3-4 bets that will pay off big time. It helps to go "all-in" when the odds are increasingly in your favor.
Diversification may preserve wealth, but it's Concentration that builds it. Over the years, it's usually 3-4 bets that will pay off big time. It helps to go "all-in" when the odds are increasingly in your favor.
10/ Vijay Kedia ( @VijayKedia1).
Investing is simple, but not easy. Simple, because you can reduce any investment to a few key components. Not easy, because you still have to do all the work to gather those components.
Investing is simple, but not easy. Simple, because you can reduce any investment to a few key components. Not easy, because you still have to do all the work to gather those components.
11/ Chandrakant Sampat.
The Top Management are the Business Partners of the Shareholders. It's the duty of the Shareholders to question the Management and demand justification from them for all major business activities.
The Top Management are the Business Partners of the Shareholders. It's the duty of the Shareholders to question the Management and demand justification from them for all major business activities.
12/ Sanjay Bakshi ( @Sanjay__Bakshi).
Many things about an investment is measurable. What can't be measured, can't be managed easily.
Many things about an investment is measurable. What can't be measured, can't be managed easily.
13/ Michael Burry ( @michaeljburry).
There's no substitute for good-old hard work. In this time and age, information is available aplenty. But reading, analyzing and making sense of that information requires determination. That's a big edge to have.
There's no substitute for good-old hard work. In this time and age, information is available aplenty. But reading, analyzing and making sense of that information requires determination. That's a big edge to have.
14-END/ I also interact with people on Twitter, ValuePickr and WhatsApp on a regular basis. I cannot talk about all of them here for obvious limitations. But if I have discussed about a company with you, please note that I am utterly grateful for that conversation.
