Investments are simple. However you either know it or do not know it. Let me tell you what worries me when I talk to young investment professional. Just finished one such interaction…of future fund managers..my advice:
- If you do not know how the ‘Value’ is going to be ‘Discovered’ you cannot be a Value Investor.
- Remember the Contrarian track crosser got run over by a train. Understand Contrarian investing.
- To be a Contrarian Investor you need to know how to resist peer pressure. Easier said than done.
- Peter Lynch did not say ‘Invest in companies if you like their products. He said ‘Research them, then decide’.
- Warren Buffet suggests Indexing and Compounding. I have been saying that for 35 years. WB for 85.
- Make Rs. 20000 mistakes when you are 28. Cheaper than Rs. 50,00,000 mistakes when you are 58.
- 99% of the people reading this do not need margin trading, or FnO. For the retail guy, these are stupid concepts.
- You invest with your own money. Investing with borrowed money is making money for the bank.
- If you do not know how your adviser is making money, keep your purse at home.
- Have you ever gone to a ‘cheap’ interior designer? Do you realize you paid him much more than an expensive one?
- When you speak to many fund managers, your belief in Indexing should go up, right? Ask me.
- Day trading, Leveraging, worrying about Macros. You can never master them. As a broker I refuse to tell you that.
- As long as you concentrate on what YOU can control: How much to invest, how long to keep, 99% of the battle is won.
- Growth stories are lovely to talk, and have a sex appeal. Value investing makes money.
- Sometimes all the Value lies in the Growth that is about to happen.
- Albert Einstein said ‘Compounding is the Eighth Wonder’. He did not see Credit Card debt. Negative compounding is lethal.
- Stop Bull Shitting to older investors. We saw 1992, 1993, 1999, 2003, 2007. Nothing like a -46% and +233% teacher.
More to follow..not sure when!!
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