"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

Insights from Philip Fisher. One of the best docs I came across for individual investors.

Phenomenal effort by @SiddharthVoraPL @PLIndiaOnline 👏👏

cc: @dmuthuk @Gautam__Baid @saxena_puru

https://t.co/K19gWk9TFO

Philip Fisher's 15 points, simplified. ⬇️

His Investment strategy and Search strategy. ⬇️

Full scale scuttlebutt is not possible for individual investors (lack of time, resources, contacts), but with efficient search & communication online (tuning out the noise), there are still some ways to do good research.

Good sequence of steps to filter from a wider universe of companies to the few promising ones that meet the criteria. ⬇️

Excellent Checklist for Business, Management and Financial characteristics. ⬇️

Phenomenal article/compilation on "The Biggest Mistakes Investors Make". h/t @manualofideas @JMihaljevic 👏

cc: @dmuthuk @Gautam__Baid @saxena_puru

My fav pts in the thread below

Lot of great points on the importance of having a strategy, process, discipline, patience, self-reliance, awareness of risk, biases/emotions, learning from mistakes & more.

More ⬇️

Some more ⬇️

The last year has delivered great results to many Portfolios but Market conditions are always changing and it's important to ensure the Process and Portfolio are built to withstand whatever the Market throws at it in the short-term and sustain & succeed for the long-term.

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

"The Intelligent Investor" is a fantastic book for learning about Investor & Market psychology.

Great compilation of quotes from the book. h/t @KenFaulkenberry

cc: @dmuthuk @Gautam__Baid @saxena_puru

Use this great book for those timeless principles, not for the hard & fast rules and quantitative stuff that used to work 70 yrs ago.

My fav quotes in the thread below, categorized into few sections.👇👇

✔️Discipline

Investing isn’t about beating others at their game. It’s about controlling yourself at your own game.

The sillier the market’s behavior, the greater the opportunity for the business like investor.

By developing your discipline and courage, you can refuse to let other people’s mood swings govern your financial destiny. In the end, how your investments behave is much less important than how you behave.

The investor’s chief problem – and even his worst enemy – is likely to be himself.

Even the intelligent investor is likely to need considerable will power to keep from following the crowd.

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 👇

IT WAS RISHI KANADA WHO GAVE THE ATOMIC THEORY & TALKED ABOUT THE GRAVITY OF EARTH, 2600 YEARS BEFORE AN APPLE FELL IN FRONT OF NEWTON'S EYES:

Scientists of the modern world credit an English scientist John Dalton (1766 CE -1844 CE) for the Atomic Theory.

And this is because, most of us are not even aware of an ancient Indian Sage named Kanada, who was the first to formulate the theory of atoms, almost 2600 yrs before Dalton and talk about earth's gravity.

Rishi Kanada was born around 600 BCE in Dwarka, Gujarat and he was the son of a philosopher named Ulka. He was fascinated with the minute detailing of the things right from his childhood. Once, when he was very young, he accompanied his father on a journey to Prayaga.

He saw plentiful grains scattered along the path leading to the shore of river Ganga. It's a tradition in Hindu families to scatter the grains for the ants and birds to feed on them. Suddenly, an ant caught his attention, who was feeding on a rice grain.

He was mesmerised by this very fact that how a small grain of rice becomes food for the ant but to satisfy the hunger of a person so many grains are needed together. This incidence made him realize the importance of a single grain of rice.

NARHARI AND BHAGWAN PANDURANG/VITTHAL

Once a goldsmith by the name of Narhari lived in Pandharpur. He excelled in his craft. He had vowed not to look at Pandurang or visit his mandir ever, as he was a Shiva Bhakt.
One day, a wealthy merchant visited him.

He wanted a gold girdle studded with precious gems, to be made for Prabhu Vitthal. Narhari refused to make it as it was for Vitthal.
After many requests, he agreed to make the girdle but asked the merchant to bring the measurement from the mandir as he himself would not go there

The measurement was given n he made the girdle. When the girdle was put on Vitthal, it was loose. Narhari had to shorten it. Now the girdle became tight. So Narhari was forced to take measurement on his own. He had to go to the mandir but went blindfolded to avoid seeing Vitthal

In the Mandir, when blindfolded Narhari touched Vitthal, he felt as if he was touching Shiva with matted hair, the moon, snake in His neck and Trishul in His hand. Ecstatic with joy, he removed the blindfold to see Shiva but he found the murti of Vitthal with Rukmini there.

He realised the truth that there was no difference between Vitthal and Shiva. Narhari at once fell at the feet of Panduranga. He then took the measurement of the waist of Vitthal and this time the ornament fit the Murti perfectly.

Narayan Hari🙏🏻

@SaveToBookmarks Namaste! There you go! Original tweet by @buzz_chronicles: "@SaveToBookmarks Namaste! You can find it here. Original tweet by @AchuthArora: ...". Enjoy 👌

Hi! There you go! Original tweet by @SaveToBookmarks: "@buzz_chronicles @AchuthArora @OllieEmberson @rattibha No more missed tweet 😉!

...". See You soon! 👉

If you are the CEO or CFO at a business who banks with SVB; here are some things you CAN do over the weekend

1. Build a 4 week rolling daily receipts and payments style cashflow forecast.

2. Gear up finance team to actualize & reforecast every AM by 10am

3. Schedule a Daily Cash Management Crisis call for 10am every day. CEO to chair

4. Redirect any future cash receipts / revenue into non SVB accounts. Don’t throw fresh money on the fire.

5. If SVB is your only current bank. Open accounts with 2 other AA or A rated banks.

6. Go supplier by supplier and grade them a, b or c
a - showstoppers
b - pay if you can
c - don’t pay

You want as few a’s as possible, ideally none.

7. Find out how to get your $250k FDIC cash.

8. If you are able to pull any deposits or bonds back into a non SVB account. Do it. Put hands on any liquid you can.

9. Communicate a salary deferral plan with your top team. CEO takes the most pain $ and %. Important signal.

10. Elevate sign off of all new POs to CEO and CFO jointly. Don’t sign any off.

11. Make a list of ‘survival headcount’. The bare minimum on which the business can operate.

You may need this to prioritize payroll later.