Peter Lynch averaged 29.2% annual return between 1977 to 1990.

His books One Up Wall Street and Beating the Street offered great insights into his success.

Here are my top 10 lessons from the legend:

Marathon Asset produced several iconic investors such as Nick Sleep and Jeremy Hosking.

Their letters from 2002 to 2015 provided a treasure trove of insights into their investment frameworks and how they look at the capital cycle.

Here are my main takeaways:

1/ Periods of high profitability leads to reckless investments.

When profits are high:

-Boost CAPEX with little regard for ROIC
-Competitors will follow suit to avoid losing market share
-CEO's incentives aren't aligned with shareholders

It's a race to the bottom.

2/ The capital cycle will swing down when investments are taken too far.

Forecasts that were reasonable will now look overly optimistic.

Profits collapse, management teams are changed, CAPEX is cut, and consolidation begins.

This will pave way for a recovery of profits.

3/ Asset growth matters

Consider both asset growth at the company and industry level.

Avoid industries where assets are growing rapidly.

4/ We tend to extrapolate

When overdone, investments that appear logical at first can become disastrous.

We have a tendency to forecast linearly when many things are cyclical.

Examples: trade cycles, credit cycles, etc

Terry Smith is often referred to as "the English Warren Buffett".

He runs Fundsmith which has a fund size of £27.9bn.

Despite the size, Fundsmith did a CAGR of 18.4%.

In his book Investing for Growth, he explains his investing philosophy.

Here's a breakdown:

1. Fundsmith's winning formula

Find companies that focus on delivering value.

Not those who are looking to pacify Wall Street with short-term results.

2. Avoiding "cheap" companies?

Low multiples are not a reason to buy a company.

A ship will continue to sink if it has a hole in it.

"A stock may have a low valuation but an even lower intrinsic value. Buying such a stock is not a recipe for investment success."

3. Getting quality right

For long-term investors, getting the quality of the business is more important than the valuation.

“An investor could have paid 281 times earnings for L’Oréal, 156 times for Colgate, and 147 times for Brown-Forman and still beat the market.”

4. "Unprofitable" companies could be good investments

Many of the best companies don't show earnings today.

But that's because they're heavily reinvesting for the future.

It's just that the earnings hasn't show up.

Jeff Bezos left a lucrative career at 30 to start an online book store.

His letters since founding Amazon are full of insights into investing, decision making and life.

I have consumed all of Jeff's letters and interviews since 1997.

This is what I have learned:

1. The regret minimization framework

Jeff would imagine himself at age 80, "What have I regretted in life?"

And work backwards to guide your present decisions.

Most of our regrets are from the things we didn’t try, the risks we didn’t take, or the paths we didn’t travel.

2. It's all about the long-term

Competition is sparse when you are competing in decades.

Many companies make decisions based on the next three to five years.

Bezos is investing for the next two decades.

3. Maximizing shareholder value

A company's value today is the present value of future cash flows.

85% of a company's value are from year 3 and beyond.

Invest today to ensure that a company achieves durable growth in the future.

4. Focus on the customers

Focus on solving problems and the share price will take care of itself.

Share prices in the short-run has no indication as to how well the company is doing.

1/17

IKIGAI : A reason for BEING .

I have structured the essential bits & pieces of the book in a flow for easy understanding + compiled some handwritten notes.

As always these are just MY TAKEAWAYS from the book :))
#ikigai
#BookReview
#BookRecommendation

2/
Firstly what is #IKIGAI ?

The Japanese call it - A REASON TO JUMP OUT OF BED EACH MORNING.

It's a convergence of 4 things .
*What you love
*What you are good at
*What you can get paid for
*What the world needs .

We need to find our Ikigai in life!
(Pic from the net)

3/
Let's begin with DAILY HEALTH HABITS.

A SOUND MIND IN A SOUND BODY .

Both our MIND & BODY must be exercised well to avoid deterioration in latter years of life .

Have a mental workout routinely by stepping out of your COMFORT ZONE.
Expose yourself to CHANGE.
#RewireBrain

4/
For a sound body there's no need to exercise relentlessly . Regular Yoga, Surya namaskar and Gardening is more than enough.

Don't be a couch potato! 🤷 Keep moving !
Our metabolism slows down just after 30 min of sitting sedentary.
#KeepMoving

5/
#StressKills

Most health problems are STRESS INDUCED.
Hence TAKE TIME OFF every now & then .
SLOW DOWN !!
Life isn't a race .So stop running all the time.

Condition your mind to enjoy each moment by practising #Mindfulness.
Be Self aware & aware of your surroundings!

10 Life-changing Lessons From the Book “The Art of the Good Life”

⚡️Book Review⚡️

- By Million-selling author of The Art Of Thinking Clearly

1. Peak-end Rule:

You remember the high point and the end point of your holiday, but the rest is forgotten.

👉Remind to make them as sweet as possible.

2. Plans are nothing. Planning is everything.

A good life is not a stable state or condition.

👉The good life is only achieved through constant readjustment.

3. Inflexibility as a Stratagem

When it comes to important issues, flexibility isn’t an advantage – it’s a trap.

👉Use radical inflexibility to reach long-term goals that would be unrealizable if their behavior were more flexible.

4. Reality Doesn’t Care About Your Feelings

👉Accepting reality is easy when you like what you see, but you’ve got to accept it even when you don’t – especially when you don’t.

Read all these books in the first half of 2021 📖📚

Recommending all of them 👇🏼

Billion Dollar Whale is a fascinating story about how one mastermind was able to rob billions of dollars from Malaysian Sovereign Fund and use that money to finance everything from parties with Paris Hilton to the movie Wolf of Wall Street.

Thrilling and Insightful 💰

Joys of Compounding by @Gautam__Baid teaches you various aspects of the magic that is compounding.

From finance to more importantly how compounding lessons in life play an important role.

This one has both lessons in life and investing packed into one.

Highly recommended 🌱

In The Plex give you an inside view on how one of the greatest companies in the world - Google, works.

Steven Levy is one of my favourite authors 🔍

If you're a fan of history and geopolitics then this one is for you.

The Rise and Fall of Nations by Ruchir Sharma has to be one of the best books written on global political landscape and the rules that govern them today. 🌇

2️⃣0️⃣ - Self development audiobooks to take back control of your life:

1. The secret.

2. Think and grow rich.

3. The magic of thinking big.

4. The four agreements.

5. You are a badass.

Lessons I Learned From the Book

"13 Things Mentally Strong People Don’t Do"
✍🏻 @AmyMorinLCSW

📚 Book Review (thread)

1.Mentally Strong People Don’t Worry About Pleasing Everyone

Pleasing everyone can negatively impact mental strength.

When you accept you won’t please everyone, you become stronger and build courage when you anticipate displeasing others.

2.They Don’t Feel the World Owes Them Anything

Mentally strong people can shift their focus away from their debt. Hence, they can help people in need. Mentally strong people keep themselves busy doing good deeds.

3.They Don’t Waste Time Feeling Sorry for Themselves

No one is immune to hard times. However, it is how you react to these situations that is important. They replace self-pity with gratitude.

4.They Don’t Resent Other People’s Success

Overcome your envy of other people’s success and learn how to use their success to your benefit.

When people enjoy and celebrate success, they attract other successful people, creating opportunities for collaboration success.