Biggest mistake many investors make in highly cyclical sectors like steel, sugar, metals etc.

is that...during upcycle they assume earnings to be structural and get swayed away by optically low valuation thinking it as value buy..

Result... averaging down during fall n disaster

💥

If you understand just this one quote, it will transform your investing journey...

So powerful...

#investing #compounding

💥

Do you want to check if you are holding earnings compounding machine in less than 3 seconds?

Load 10 years monthly chart...and if it's broadly 45°, most likely you are holding a compunder...

Check for your portfolio companies, now..

Power of #TechnoFunda #investing

🎯🎯

Mega thread on how the India’s Largest Telecom Operator – Reliance Jio (~35% market share) came into existence & became India’s Largest Mobile Broadband in less than 2 years.

Crazy story...no less than revolution..

Please retweet and comment below if you got blown away..

(1/n)

1 >> It was year 2011...year of spark

"The idea of Jio was first seeded by Ambani’s daughter, Isha, in 2011. She was a student at Yale (in the US) and was home for holidays. She wanted to submit some coursework and she said, 'Dad, the internet in our house sucks'," he recalled.

2) There was opportunity...

What was that?

That big thing...that will change India forever...for good..

Ambani said - Akash, at that time, stated that in the old world, telecom was the voice and people made money on calls but in the new world everything is DIGITAL...!!

3) That was it - DIGITAL

One simple but powerful idea..high speed internet is future

After the conversation, he researched more about it & found out that India was suffering from poor connectivity of data & prices were high which was not affordable to majority of Indians.

4) But it was not easy...

Dream was BIG...but it was game-changer...

After years of planning & research, Jio was finally launched on 5th September, 2016.

There was lot of competition...but Winning is their DNA..

Share Market is only place where except fall in markets n euphoria,

Majority of the times

Fall in price ≠ CHEAP / DISCOUNT

And rise in price ≠ EXPENSIVE

Business performance is ignored

Many keep averaging down n don't add at higher price when business improves

#investing

🚀

If you find megatrends early, it could be highly rewarding...

If you want to refresh powerful concepts of Chemical Sector...

This is must watch for you...

One of the most in-depth analysis on the sector you will ever see..!!

#investing

I thought this was a great quote from Charlie Munger: investors chasing the latest cyclical trend often forget that "the old cyclicality is going to come back"

(From @williamgreen72's "Richer, Wiser, Happier" book)

On Cyclicals

All hell breaks loose once the growth slows down; as every investor rushes to exit at the same time. The decline is 5x faster than the rise.

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.

@Gurpreetnarang2 @CMungerilal I was pointing out why cyclical stocks trade at low PEs when the earnings are strong, you misunderstood my tweet.

@unseenvalue @sahil_vi It is mean reversion for company's performance. Crowd thinking usually takes a belated u turn after the prices have retreated significantly.