Creating wealth over long periods of time..requires compounding. Yes, starting early, compounding and far more important not to interrupt the compounding. What other characteristics do you need…?

Well here is my summary…..

1. Ability to accept your mistakes – I bought GMR Infra – at 71 and sold at 69 the minute I got the news that it was being rigged. If I had sat tight..I would have watched it go down to 9. So quickly accepting your mistakes is important.
2. Humility – see Warren Buffett, Ramdeo Aggarwal, Sanjoy Bhattacharyya, …and many others quickly accepting their mistakes. That helps them stay on the ground when people say “you are great”. When you walk into the Motilal Oswal office building in Mumbai, you realize that the structure was created by the two of them – RA and Motilal Oswal.
3. Ability to stand alone – when the whole world is going in a different direction or different world, the ability to stand alone. For example if you think that a compay with 50% market share – like Indigo deserves a higher market cap you could be right. However, if you think that the promoters will (very usual in India – TV18 is still to create wealth for its shareholders) destroy wealth and make this Rs. 50k crore look “high” you could be right too. If you succeed, you make money, if you fail, you look like a “stubborn fool”. Now Suzlon, Big Bazaar, Financial Technologies, – the list is endless, look like terrible investments. However each idea was a brilliant idea – and the execution was goofed up. However, you had to take a stand much earlier, not in 2020!
4. Ability to read, read, and read – balance sheets, books, research reports…what have you.
5. Ability to find time to introspect – I am sure that the big investors stay away from disturbances and find a lot of time to read. Motilal Oswal is perhaps the biggest reader – or it could be Sanjoy – but all of them MUST be thinking about their reading too. No point in biting and eating if you can’t think about it. I am not sure whether Debashis Basu qualifies in this category, but he is a big reader too. Whenever I meet him in his office, he is surrounded by books.
6. Patience – Vallabh Bhansali talks about Vipasana – the ability to sit tight for a long of time.

So when you meet one of them – or even managers like Prashant Jain or Naren Sankaran or Anand Radhakrishnan don’t ask them “what will happen next quarter”. That is the stupidest question to ask.

Instead ask them “Which are the 3 books you would recommend for a beginner like me”. Then go and buy those books. Read 30 pages a day. Yes it will take a  long time. Buy a nice notebook – and make notes. This is easy to do. Be a learning machine like Charlie Munger. This is worth copying from the biggies that you meet. Fully doable. Go and discover yourself.