What is this topic doing in a place which is about money?

Well this is about money. Remember every step that you take is helping you go towards your goal or towards complicating your life. Most of us reach a particular a little by chance, a little by luck, and a little by strategy. I can now look back and say ‘it was strategy’ but that strategy was helped by many things. Some of it like place of birth and stay were clearly luck, and the fact that I learnt some of the skills that I have is skill!

Let us assume that you want to get calmer in life and in investing..what are the things that help?

  1. Realize that good fund managers create a focus in their strategy and stick to it. Like Raamdeo Agrawal says companies are either multi baggers, ordinary, or value destroyers. It is the fund managers job to constantly look for Great companies – and it is numbers driven. So somebody has to relentlessly keep pursuing the numbers.
  2. After a point you realize that there is nothing new to learn in investing: it is just the implementation of the simple things that you learnt. Continuous pursuit of the same things – Roce, growth, PEG, ronw, management integrity. I have seen a study showing that only about 100 listed companies have created wealth for the shareholder. So looking at the 9000 listed companies makes no sense. Look intensely at the sensible companies.
  3. Get up early: you get a lot of time for yourself without any disturbance. Just you and your books. Or you and your writing. Or you and walking, running, etc. A lot of ‘you’ time is available from say 4.30am till about 8am.
  4. Chant some mantras: If this helps you great. It is a nice way to start. See if you can sit silently for an hour even when there are people around you (silence is easy when there is nobody). Try practicing 45 minutes of silence – no talking, no writing, no pen, paper, phone, ipad…just no interaction except with yourself. At some stage no processing of thoughts.
  5. Walk instead of using a vehicle: again you get time with yourself. 2-3 kms is easy to walk. In Lower Parel it is faster than taking a vehicle, trust me, tried it yesterday it worked. Took a train, finished 3 meetings, came back by road simply because i thought 8.30 trains would be too crowded. Works. Public transport helps many times.
  6. Concentrate: Do one thing at a time. When you are listening, listening. In most times there is no need to react. When somebody asks me ‘where do you think the market is headed?’ I look to the person next to me to answer. That person does. In most cases the person next to me will have a view on China, Obama, Na Mo, Rail budget, ..I am happy listening. I do not understand macros. I am happy that I know that.
  7. Be Focused on what you want: Money, happiness, meeting people, high sounding title, – have not found ‘one job’ which gives all of this. Normally it is this or that. Make your choice responsibly.

Relax.

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  1. Getting up early is a good one that I have been practicing off late. Oh yes, also get to read your articles before the start of the day.

  2. Superb. That’s wealth transcending money. All the more reason why people stick to this site and revisit the posts many many times while looking forward to the next gem.

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