Stocks need not move for few years and then give huge returns in a single year. Always staying invested is the only way to benefit from these movements. Most of us become impatient and quit thereby foregoing gains.

Debt funds are generally good but still you need to understand this fine difference:

If you lend to banks, the risk is on banks.

If you lend to mutual funds, the risk is on you.

The effect of instant information is immediate reaction, even when no reaction is warranted.

"When an industry's underlying economics are crumbling, talented management may slow the rate of decline. Eventually, though, eroding fundamentals will overwhelm managerial brilliance."-Warren Buffett

The less you've expectation from others, the more you would receive respect in the relationships.

Good time to buy is when a theme or segment is ignored by the market and not when it is popular.

When you buy what is popular when it is popular, need to forego returns for few years.

I have seen plenty of Buffettology on Twitter and in other places over the past few years. Its time to clear the air and understand that there wasn't one but 3 different Warren Buffett's that existed throughout his career 📚📚

Time for a thread: 3 Different Buffett's 🧵🧵🧵

One of the biggest mistakes that you as an investor can make is to forget the basic and the most important mental model an investor can have: Numeracy. Being fluent with numbers and respecting the context in which Buffett made his returns.

At the beginning of his career, let's call this Warren Buffett 1 i.e. Between 1957-1968. This was the time when he was working with small sums of money. He was extremely valuation conscious and guess what. How many stocks did he buy and sell between this period?

In this period, he bought and sold nearly 400 stocks. He bought Geico and sold it within 18months, he bought Marshals wealth at a PE of 3 times and he bought Commonwealth at a PE of 5times and sold it at a 60% gain. His returns were mind-boggling too during this time period

No Wonder he said, “The highest rates of return I’ve ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers… I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.” Look at the performance once

1/9 I have noticed a counterintuitive benefit from sharing my portfolio publicly. This isn't call for you to share your portfolio publicly; I'm aware it is not feasible/rational for many out there.

I'm just explaining how I think it helps *me*.

2/9 Before talking about the benefit, let me briefly mention the potential negative.

Well, the negative is probably obvious. Sharing my portfolio publicly may create a commitment bias. It's hard to change your mind once you propagate all the bullish pov on stocks you own.

3/9 There is truth to that, especially since I say I intend to be long-term investor.

It would create a cognitive dissonance if I get in and out of stocks every few months and yet claim myself long-term oriented simultaneously. So I kinda have to remain invested unless...

4/9 ...I think I've compelling reasons to sell.

While that sounds like a lot of negatives, I'm increasingly thinking the opposite.

If in 30 years I discover my return severely lagging the index, I already know who the culprit is. It isn't Fed, Xi, or any US President. It's me.

5/9 Essentially, I need to save my portfolio from my own worst tendencies.

Not having the option to flipping stocks every other month is likely to work in favor of my eventual goal of long-term ownership of great businesses.

Excellent list of "Investing Lessons". Very relevant and useful stuff for individual investors. h/t @FMUndercover

The List 👇

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

Just the journey of Bajaj Finance proves it why it is difficult to hold businessess. People with different mindsets (technincals) or deep value kept making noise throughout the last 6 years.. business did what it had to do. Only very few I know have held it firmly

Holding the right business, it is increasingly becoming clear to me is the most difficult thing to do unless you write down your investing philosophy and know it in your bones