Sharing the latest holdings and some random thoughts.

@FromValue @dhaval_kotecha @SeifelCapital @saxena_puru @BahamaBen9 @richard_chu97 @TMFJMo @7Innovator @investing_city @SagaPartners @adventuresinfi

Individual Investing is a very personal journey where we need to match our strengths and strategies to our goals, while ignoring all the noise but also constantly learning and improving our process.

W/O understanding the other person's situation, interests, competency etc we shouldn't quickly offer unsolicited advice that they should be doing this or that with their portfolio.

Like "Why don't you just own ARK funds instead of holding so many SaaS stocks"? Maybe that's because I like searching for and studying solid companies from different sectors in my own free time, and buy each one after personally understanding them...

...and buy them at my own timeframe slowly over the years. As long as the med-long term Portfolio results are better than the indexes and comparable ETFs, that's a worth-wile endeavor.

"6 Rules From 6 of the World's Top Investors" - Nice article with some good lessons for long-term investors.

1⃣ Let Winners Run
2⃣ Do the Research
3⃣ Have Conviction
4⃣ Patience Is Key
5⃣ Be Wary (of random advice)
6⃣ Look

1⃣ Let Winners Run : "Be patient with winning trades; be enormously impatient with losing trades."

Although this is in reference to trading, it applies well to long-term investors also. Be patient and don't take quick/small gains when you're invested in wonderful companies..

..acquired at decent prices with lot of growth ahead.

At the same time, if the thesis is broken and you no longer believe in the Company which has been a loser in your Portfolio, don't stay invested with a hope of coming out even.

2⃣ Do the Research : "First, look at the quality of the company, then at the price. Looking at the quality of a company requires that you read financial statements, listen to conference calls, and vet management.

Then, only after you have confidence in the quality of the company, should the price be evaluated.

If a company isn't a quality company, don't buy it just because the price is low. Bargain-bin companies often produce bargain-bin results."

Morningstar's "Investing Classroom" is a phenomenal (free) resource for DIY investors.👏

Covers a lot of topics from Investing basics, Financial Statement/Ratio Analysis, Behavioral Finance, lessons from great investors...

CC: @dmuthuk @Gautam__Baid

Content from the 5 course levels 👇

Note : Not sure if you need to register as a free user to access all the content. Also not sure if the content is accessible in all the countries.

✅Article at the end "20 Stock Investing Tips". Below are my fav ones.

1. Keep It Simple
2. Have the Proper Expectations.
3. Be Prepared to Hold for a Long Time.
4. Tune Out the Noise.
5. Behave Like an

7. Watch Where You Anchor.
8. Remember that Economics Usually Trumps Management Competence.
9. Be Careful of bad Management Teams.
13. Don't Be Stubborn.
17. Look for Quality.
18. Don't Buy Without Value.
20. Think Independently.

✅Section about lessons from Peter Lynch (similar sections about Buffett, Fisher, Graham & others).
✔️Stick to What You Know
✔️Do Your Research and Set Reasonable Expectations
✔️Know the Fundamentals
✔️Ignoring Mr.

Excellent 3 part series on the lessons complied from many Value Investing Books.👏

Part 1⃣: The Mindset
✔️Think like an owner
✔️Patience is the greatest virtue
✔️Mr. Market – your friend, others’ enemy
✔️Use your Rationality, not your

Part 2⃣:The Methodology
✔️Margin of safety and the quest for bargains
✔️A risk-averse philosophy and strategy
✔️Uncertainty is not risk
✔️The Dhandho Way: Heads, I win; tails, I don’t lose

Part 3⃣: The Hunt
✔️The perfect business is not necessarily a sound investment
✔️The quantitative & qualitative assessment
✔️The quest for gold (good prices for good Businesses)
✔️Fish where the fish are
✔️Be conservative & know your circle of

Value Investing is too often portrayed as just a hunt for statistical bargains. It encompasses a lot more that long-term investors can learn too - quest for quality, using the appropriate Valuation methods, patience, contrarianism, risk awareness, Volatility...

Good Investing Checklist that goes thru Basics, Financials, Valuation & Behavioral factors. h/t Nicole Seah (not sure if it's @startingfromnix)

1.The Story
Do I understand the business?
Do I believe in the mission?
Moat?
How well do I trust Mgmt?
Do I know the key risks?
Do I have an idea why the company is trading at a discount to its intrinsic value?
What are the potential catalysts?
Is there room for future growth?

2. Financial Metrics
Financial statements and footnotes
Cyclical, countercyclical?
Inflation impact
Operating Leverage
Assessing Working Capital + Capex
Trends in Revenues, Margins, Cash flows...
Recent investments, acquisitions?

3.Valuation
Relative Valuation
DCF

Good pts on few of the behavioral biases to watch out for 👇

Excellent summary of Philip Fisher's book "Conservative Investors Sleep Well".

Plenty of great points on identifying the growth potential, managerial capability and defensiveness of a Company.

cc: @dmuthuk

Characteristics of high quality companies with good long term prospects

✔️Lowest-cost
✔️Customer focused
✔️Effective research
✔️Strong marketing
✔️Good accounting

People factors

✔️Determination, competence and teamwork
✔️Internal development and promotion
✔️Entrepreneurial and disciplined
✔️Genuine and conscious culture

Business characteristics to grow and defend

✔️Profit margins
✔️Barriers to entry
✔️First mover advantage (& extending that Leadership)
✔️Competition and substitution
✔️Economic moats

Few of my fav pts from the article. Not every Company will have all these traits, but the more the better.

One of the best Investing blogs I recently came across. h/t @StableBread 👏

Five of my fav articles⬇️

@dmuthuk @saxena_puru @Gautam__Baid

1⃣On Moats
Network Effect
Intangible Assets
Switching Cost
Economies of Scale
Low Cost Provider
Toll
Cultural

2⃣Crucial Investment Principles You Need to Have
Capital Appreciation
Buy Low, Hold, Sell High
Recognize/Avoid Spec Bubbles
Ignore Noise
Stock Market=Pendulum
Diversify Your investments. Don't overdo it.
DCA
Understand Share Price Value
LT Tax

3⃣How to Read and Analyze Any 10-K Annual Report

Business Summary
Risk Factors
Selected Financial Data
Management's Discussion and Analysis
Financial Statements and Supplementary Data
Notes to Consolidated Financial

4⃣The Beginner's Guide to Dividend Investing

Dividend Yield
Dividend Growth Rate
Dividend Payout Ratio
Ability to Pay Back Debt
Net Debt to EBITDA Ratio
Return on Equity
Credit

5⃣How to Calculate the Intrinsic Value of a Company Like Warren Buffett

Owners Earnings
Growth Rate
Discount Rate
Calculate Intrinsic Value
Scenario Analysis
Margin of

Excellent Section on CFI site for learning more about Business Valuation. 👏

Few of my fav articles in the thread

✔️Cash Flow Drivers
Revenues
Gross Margins
EBIT(DA) Margins
Working Capital
Capital Expenditures
Capital

✔️Valuation

✔️DCF Analysis Pros &

✔️Enterprise Value

Excellent list of "Investing Don'ts" by @NovelInvestor👏 Some solid advice for long-term investors in individual

The List

1⃣ Do not make hasty, emotional decisions about buying and selling stocks.

2⃣ If you are convinced that a company has dynamic growth prospects, do not sell it because it looks temporarily too high.

3⃣ Do not fall in love with stocks to the point where you can no longer be objective in your appraisal of them…

4⃣ Do not concern yourself as much with the market in general as with the outlook for individual stocks…

5⃣ Forget about stock market “tips.”

6⃣ Remember that stocks always look worst at the bottom of a bear mkt (when an air of gloom prevails) and always look best at the top of a Bull mkt (when everybody is optimistic).

7⃣Remember that you’ll seldom if ever buy stocks right at the bottom or sell them right at the top.

8⃣ Do not buy stocks as you might store merchandise on sale (Don't buy stuff you don't like or meet your objectives)…

9⃣ Remember that the public is generally wrong (during periods of over-enthusiasm or over-pessimism)…

One of my all-time favorite articles on "Investing Mistakes". h/t Altais Advisors @basrars @vishalmittal22 👏

So many good lessons here for long-term investors in individual stocks. My fav pts in the thread below.

1⃣ Selling good businesses too early: without giving due importance to long term growth outlook and the potential of the business to scale.

If you are invested in a growing business, do not sell it for temporary overvaluation,

there may be some time correction which is fine, which should be managed at a portfolio level. At the same time, one needs to be careful of slowing growth or fundamental deterioration in the business.

2⃣ Going down the Quality curve: Selling good companies, which were growing well, and investing in cheaper but low quality/ growth companies. Over the cycle, this results in sub optimal returns.

3⃣ Waiting for a little lower price to buy: Losing 10-20 baggers waiting for 20-25% lower price! Missing the boat on so many opportunities trying to just get them a bit cheaper, which never comes.

Some Excellent articles on Financial Ratios and Analysis.
h/t @discover_ci 👏

1⃣ Profitability

2⃣Liquidity

3⃣Leverage

4⃣Asset Management

5⃣Financial Analysis: What It Is and Tips for Getting it Right.

✔️Determining a Company’s Key Performance Indicators
✔️Collecting Company Financial Statements & Calculating Financial Ratios
✔️Analyzing Operating Results & Financial

Excellent article on Investor psychology & Market cycles based on Howard Marks' "Mastering the Market Cycle".

cc: @dmuthuk @Gautam__Baid

My fav pts 👇

continued...

Excellent pts 👇

✔️Mania and risk
"The combination of feedback loops and irrational exuberance, where newfound expectations and enthusiasm, encourages investors to bid up and rationalize extraordinary growth in asset prices.

By contrast, during periods of fear and pessimism, many face difficulties with identifying potential future value beyond the immediate-term.

An understanding of where attitudes to risk sits within the current investor psychology cycle can be a useful knowledge advantage.

10 Essential Trading Principles (Thread)

⬇️

1️⃣ Trade Plan:

The first thing before a position is initiated is a clear plan must be in place detailing specific entry areas, their associated sell stops, and potential profit-taking zones.

Below are some factors to consider when crafting your trade plan:

✅ Individual Goals
✅ Personal Progress
✅ Current Market Environment
✅ The many fundamental and technical factors relevant to each individual stock, its sector, industry group, and its overall strength relative to the rest of its industry.

2️⃣ Risk Management:

This is the golden key to consistent success in the stock market. Yes, it is even more important than stock selection.

Bernard Baruch, a close friend of Livermore said even being right 3 or 4x out of 10 should yield a person a fortune if he cuts his losses.

3️⃣ Annual & Quarterly Earnings:

Look for companies with:

✅ Annual earnings that are positive and have been increasing YoY for at least 3 years.
✅ At least 25% QoQ earnings/sales growth for a minimum of 3 quarters.

These are early indicators a stock may be ready to explode.

In this thread, I'll walk you through my set up, absorb it as much as you can.
The instrument that I trade in are Nifty (NF) options
Thanks to @AdityaTodmal @niki_poojary for contributing in making this

How to set your charts:

Lets try to understand what to sell when 50EMA, VWAP & RSI works in different scenarios

What options to sell and how to place the SL

Important to have a birds eye view when trading in NF options as many stocks influences its movement

Here are the 100 things I’ve learned in investing.

I've been updating this since 2012 to share, to reduce my own unforced errors, and to reinforce the good habits, like #47.

/thread

1. Most of this list is dedicated to insight on stock picking, but know this: It's darn hard to beat the market. 99% of people are best served steadily buying and holding low-cost index funds at the core of their portfolios -- and I may be understating that 99% figure.

2. Looking for a diversified, low-cost index-fund core? Vanguard is what I recommend to anyone who asks. Three flavors: 1) Stocks and bonds: Target date funds. 2) Entire world stock market: $VT. 3) Entire world stock market, split up between U.S. and foreign: $VTI + $VXUS.

3. Being contrarian doesn't just mean doing the opposite. The "contrarian" street-crosser gets run over by a truck.

4. In any financial matter, find out what the other person's incentives are. Discount accordingly.

Mental models are the secret to making the best out of the world around you

But there is a million of them...

A guide to my favorite mental models:

Marketing

Luck Surface Area:

“When you do something you’re excited about you will naturally pull others into your orbit.

The more people with whom you share your passion, the more who will be pulled into your orbit.”

Orbits are powerful in marketing, business or life

Sales

Hunting whales vs flies:

5 types of sales prospects

1) Whales
2) Elephants
3) Deers
4) Rabbits
5) Flies

How can you hunt 1,000 whales, 10,000 elephants, 100,000 deers, 1,000,000 rabbits or 10,000,000 flies?

Who do you want to hunt? Why?

(no animals were harmed writing that last tweet)

It's time for a non-hunting mental model for this

Any one have ideas?

Military

Winning Hearts and Minds:

“In which one side seeks to prevail not by the use of superior force, but by making emotional or intellectual appeals to sway supporters of the other side.”

Key: if you speak to people's hearts and the minds, you are speaking to human nature