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:

1. If you do not know how the ‘Value’ is going to be ‘Discovered’ you cannot be a Value Investor.
2. Remember the Contrarian track crosser got run over by a train. Understand Contrarian investing.
3. To be a Contrarian Investor you need to know how to resist peer pressure. Easier said than done.
4. Peter Lynch did not say ‘Invest in companies if you like their products. He said ‘Research them, then decide’.
5. Warren Buffet suggests Indexing and Compounding. I have been saying that for 35 years. WB for 85.
6. Make Rs. 20000 mistakes when you are 28. Cheaper than Rs. 50,00,000 mistakes when you are 58.
7. 99% of the people reading this do not need margin trading, or FnO. For the retail guy, these are stupid concepts.
8. You invest with your own money. Investing with borrowed money is making money for the bank.
9. If you do not know how your adviser is making money, keep your purse at home.
10. Have you ever gone to a ‘cheap’ interior designer? Do you realize you paid him much more than an expensive one?
11. When you speak to many fund managers, your belief in Indexing should go up, right? Ask me.
12. Day trading, Leveraging, worrying about Macros. You can never master them. As a broker I refuse to tell you that.
13. As long as you concentrate on what YOU can control: How much to invest, how long to keep, 99% of the battle is won.
14. Growth stories are lovely to talk, and have a sex appeal. Value investing makes money.
15. Sometimes all the Value lies in the Growth that is about to happen.
16. Albert Einstein said ‘Compounding is the Eighth Wonder’. He did not see Credit Card debt. Negative compounding is lethal.
17. 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!!