Prediction is an addition in financial world many suffer from

Sorry, addiction

Now u ll see real estate stocks threads and youtube vidoes, All sugar stocks ethanol and ancilliaries "Time for a thread" disappeared once stocks stop moving up. Understand and react. Threads come out when entries are made by bigger folks and retail enters at peaks giving exits.

Your portfolio will naturally concentrate itself, the way it should be, into your winners if you just stay out of the way.

What should your goal be as an investor?

Sustainable wealth is not made by chasing cryptos or overhyped IPOs.

Unseen rule 1 :: whatever be the reason, never justify the valuations of a rising stock price

Unseen rule 2 :: whatever be the reason, never defend the quality/reason of a falling stock price

Unseen rule 3 :: never react in an impulsive manner to a rising/falling stock price

Stock market is a crazy place where good behaviour can outperform good knowledge easily.

Most important factors that will affect the performance of your portfolio.

• Behaviour
• Self-trust
• Patience
• Cost

In investing doing nothing is the ultimate form of sophistication.

@InvestmentBook1 @may27capital @soicfinance @Investmental1 Added watchlist, for weekend 😊

We have three baskets for investing: yes, no, and too tough to understand.

A director whose moderate income is heavily dependent on directors' fee and who hopes mightily to be involved to join other boards in order to earn more fees is highly unlikely to offend a CEO or fellow directors, is not an independent director.

Stocks are bought and sold based on short term price movements. Even institutions don't take more than four quarters view. As an individual investor, you can completely ignore short term and take a decadal view. That's why each one gets different result from the same stock.

What if I told you to submit your PhD report by the 1st year of your BTech in engineering.

That’s what people do when they try to find multi-baggers in their 1st business cycle.

@BenzeneSkull @soicfinance No it’s from Big mistakes

Successful investing is hard work because it means disciplining your mind to do the opposite of human nature. Buying during a panic, selling during euphoria, and holding on when you are bored and crave action.

Live tweeting highlights from our discussion with @SamitVartak moderated by @ishmohit1 and the DIA gang. @saket1974 @saketreddy @dadalife369 @cautkarshpandey @vishal_chandi

So let’s begin -

1. Before looking at the valuation of a business, look at the fundamentals first.

On cyclicals -

2. We look for profit power, the ability of the company to control price and gauge profit. This is why we don’t look at cyclicals.

3. With cyclicals, oftentimes the promoters themselves cannot predict pricing and profitability.

On building a portfolio -

1. Reducing the size of your portfolio too much can make it harder to find big winners, the ones that can give up to 40x in 10 years.

2. I look at 15-20 stocks as a balance between not spreading yourself too thin and not takeing too much risk.

On taking away market share -

1. Creating disruptions and innovating with new products allows you to take away market share. Example #APLApollo and the DFT technology.

2. Cash cows don’t deliver outsized returns for an investor. Aggression and innovation is needed.

On themes -

1. It is very difficult to pre-empt a theme before it happens and predict how it will play out. Instead of that, I look for data.

2. Deleveraging and capex is taking place. Companies have become lean in this period.

The worst thing that you can learn as an investor early in your journey is to take a reckless risk without much research, and make money

It would take you a lot of time and effort to unlearn that easy money exists in the markets

Your view of the world and markets can change significantly when you close out your derivative positions and trading/leveraged trades v/s only hold a delivery-based portfolio.

The reason is psychological. The quick gains and losses that leveraged trades bring make you react with the same emotions you do in a regular portfolio at a faster rate. So what a 30% drawdown would make you think on a delivery portfolio ends up happening in days.

Suddenly you will find it easier to believe that negative conspiracy theory-based video or blog post than you would have otherwise.

It is therefore always a good idea to have an investment portfolio outside your trading positions to help you keep perspective of the big picture and ask the right questions.

The trading then is a subset of the big picture. Bull market cycles often go on for years and go through many bouts of hope and fear themselves. But stocks hold out better making higher highs and lows as long as the trend is intact.

Investing tid bits

⚡Bubbles & Foolishness⚡

During irrational Bubble formation in markets...
- Buying just before it pricks will make us feel foolish
- Not selling just before it pricks will also make us feel foolish

The key though, is, no one knows when the bubble pricks
😁

@Tom_Voltz1 1/

That’s a possibility.

Buffett has this concept of “owner earnings”: how much cash can be safely taken out of a business each year without hurting it?

Take out more than this, and we risk hurting the business’s competitive position, earning power, unit volume, etc.

2/

At the same time, leaving capital in a terrible business is not a great idea either. It’s like throwing good money after bad.

In fact, directing capital away from textiles (a bad business) and into insurance (a better business) is one reason for Berkshire’s success.

/End