I am going to keep this post as short as possible. What is important is that you read it, remember it and implement it:

  • Keep Investing as simple as possible, simple investments yield good results
  • Do not invest in products that you do not understand
  • Most complexities in products are created so that the manufacturer makes a lot of money – be aware.
  • Insist on a margin of safety
  • A high pe ratio is not just risky, it makes getting a good return almost impossible
  • stay away from ‘free’ advice – there is no free lunch
  • if you do not know who is paying the bill at the dinner table / poker table, clearly it is YOU.
  • be patient. Remember Dravid has more runs, more respect, and a higher average than Sehwag.
  • Risk is not a number. It is a goddamn PERMANENT loss of capital and it HURTS..
  • Be a contrarian – but to know that maintain an investment diary and record your thoughts
  • One index fund, One term insurance, one credit card, one savings account, …..anything more is a waste of time

 

 

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  1. Hi Sir,

    High PE ratio rule applies to large cap as well ? as they are less risky have good returns in almost cases.

    Thanks,
    K C Rana

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