1/12
A quickfire thread based on a book I read recently titled " 80/20 YOUR LIFE " .

Disclaimer : This is MY interpretation & the ratio (80/20) is variable..
The essence here is to identify what matters & weed out the inconsequential & thereby manage time accordingly.

1/20

Sharing some takeaways from the book : India's Money Monarchs* , ONLY of the conversation with Sanjoy Bhattacharya.

* Available on Kindle Unlimited now.

@Vivek_Investor and @dmuthuk
I think you & your followers might like this . 🙂

#BookTwitter
#BookRecommendations

2/20
🔸On How to Minimise Risk ?

* Look at long term volatility of Cash Flows ( assuming Financial Statements paint a fair picture )

* Check if business generates Free Cash Flow ( FCF). This ensures company is unlikely to be wiped out at the bottom of the cycle.

3/20
🔸Management Integrity matters.

You notice good governance only when it is gone !
Hence unless one has demonstrable proof on a long term basis that people are honest , consider them to be crooks .
Cynical approach but helps save us from losses !

4/20
🔸 Level of competitive intensity in the business matters. Risk is lower when there are fewer players.

More cut throat the industry , more finesse shall be required and growth shall depend on the ability to adapt and successfully execute.

5/20
🔸Try to anticipate what can change in a business .

Scanning the historical precedent or envisaging the future helps .

Inherent risks of business matter !

Sometimes these are completely overlooked & can prove to be extremely expensive.

1/22
I first read this book in 2009 after losing 80% of my monies on Penny stocks as a student when the 2008 drawdown happened.

Thought it was too simple !

Now in 2021, I think this is one of the best books to absorb & implement.

A 🧵

#BookTwitter
#BookRecommendations

2/22
Investing means different things to different people - Be it health/ career/external assets with an intent to reap benefits in future.

So then is everyone an Investor ?
No.
When people do different things with even same investment products we give it a different name.
👇

3/22
Investing is a PERSONAL Plan .
It's NOT a product . NOT a procedure.

One needs to have a clear picture of one's financials BEFORE making an investment plan.

Investment products comprise of items with distinct characteristics DESIGNED to satisfy a particular need.
👇

4/22
Nothing is permanent except CHANGE.
Same applies for market cycles.
Different Asset Classes help us in that.

By smart movement one can increase the velocity of one's money.

It is NOT about timing the markets.
It's ABOUT the trends in an asset class.

Few pointers
👇

5/22
Many folks acquire Speculative habits mistakenly thinking they are Investing. ☠️

L.T Investing is central for optimum returns.
Markets will be volatile.
But in long run shall only go ⬆️

Some notes on Cash Flow & Capital Gains Model , Speculation & Law of The Farm
👇

Please name one of your "Must Read" books explaining why ( in 1 tweet itself).

Any genre is welcome. 😌

#BookTwitter
#BookRecommendations

1/21
Good books are a smooth read.
The great ones aren't.

Why so? 🤔

They force you to pause,to reflect & think hard.
They make you question yourself.

Sharing few of my takeaways from one such exceptional book of 2021.

Thank you @naval & @EricJorgenson for this ! :))

A 🧵

2/21
🔹Productize Yourself

Meaning,
Leverage specific knowledge -> Scale it -> Get wealthy.

Takes decades as one needs time to figure out what they can UNIQUELY provide.

But FIND & BUILD SPECIFIC KNOWLEDGE for it can't be taught & can only be learnt.

More here
👇

3/21
"The best jobs are neither decreed or degreed.They are creative expressions of continuous learners in free markets."

Be a perpetual learner.
Know HOW to learn.

Foundations are the key.
They help learn HOW & HOW MUCH.
Club this with Authenticity to create something unique.

4/21
🔹Play long term games with long term people

🔹99% effort is wasted.
However they are not a waste.
These are merely learning experiences that delve deep into our psyche & become a piece of what we currently are.

Same goes for the books we read, the activities we pursue!

5/21
"If you don't own a piece of business, you don't have a path towards Financial Freedom."

Ownership matters. Put that money to work sensibly. Let it compound too.

"Forget rich vs poor, white collar vs blue.
It is now Leveraged vs Un-leveraged."

Elaborated here
👇

15 quotes to hit your ego from the book EGO IS THE ENEMY:

1. Wherever you are, whatever you’re doing, your worst enemy already lives inside you; your ego.

2. The ego we see most commonly goes by a more casual definition: an unhealthy belief in our own importance. Arrogance. Self-centered ambition.

3. Ego is when the notion of ourselves and the world grows so inflated that it begins to distort the reality that surrounds us.

4. We will learn that though we think big, we must act and live small in order to accomplish what we seek.

I asked, “What book do you re-read the most?”

I received 441 replies

Here are 20 books that should be read again and again:

1/

7 Habits of Highly Effective People

by Steven Covey

2/

A Short History of Nearly Everything

by Bill Bryson

3/

As A Man Thinketh

by James Allen

4/

Atomic Habits

by @JamesClear

10 Insightful Lessons From the Book “Ego is the Enemy”

⚡️Book Review⚡️

1: Your worst enemy lives in you

It is true that all of us, with no exemption, harbors a certain level of pride and ego.

Since pride is in us, it is either we feed it or starve it.

👉How you deal with your pride makes the big difference.

2: Manage your pride

As soon as you feel you are becoming egoistic, boastful, and proud – you can tell yourself to stop.

👉Instead of directing people’s attention to you, choose to direct attention to others.

3: Pride tells you to talk, humility tells you to listen

Ego encourages you to lift yourself and base your worth on nothing or false worth.

On the other hand, humility tells you how important it is to listen to people.

👉So, we listen twice as much as we talk.

4: Become a student

Ego tells you not to listen to anyone. As a result, you stop learning. You stop growing.

So, if you want to keep on learning, learn to be humble first.

✅That’s how you become Great.

10 Impactful Quotes from the book

THE CODE OF THE EXTRAORDINARY MIND by @Vishen

1. "Safety is overrated; taking risks is much less likely to kill us than ever before, and that means that playing it safe is more like just holding us back from the thrills of a life filled with meaning and discovery."

2. "If you can't win, change the rules.
If you can't change the rules, ignore them."

3. "Have big goals—but don’t tie your happiness to your goals. You must be happy before you attain them."

4. "Stress, anxiety, boredom, confidence, excitement, engagement are all contagious."