Excellent compilation of Forbes articles on Warren Buffet from 1969 to 2000s. h/t @valuewalk 👏

@dmuthuk https://t.co/V7uTYjwSrn" target="_blank">@Gautam__Baid

https://t.co/V7uTYjwSrn

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.

"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

1⃣ Let Winners Run : "Be patient with winning trades; be enormously impatient with losing trades."

Although this is in reference to trading, it applies well to long-term investors also. Be patient and don't take quick/small gains when you're invested in wonderful companies..

..acquired at decent prices with lot of growth ahead.

At the same time, if the thesis is broken and you no longer believe in the Company which has been a loser in your Portfolio, don't stay invested with a hope of coming out even.

2⃣ Do the Research : "First, look at the quality of the company, then at the price. Looking at the quality of a company requires that you read financial statements, listen to conference calls, and vet management.

Then, only after you have confidence in the quality of the company, should the price be evaluated.

If a company isn't a quality company, don't buy it just because the price is low. Bargain-bin companies often produce bargain-bin results."

Excellent list of "Investing Don'ts" by @NovelInvestor👏 Some solid advice for long-term investors in individual

The List

1⃣ Do not make hasty, emotional decisions about buying and selling stocks.

2⃣ If you are convinced that a company has dynamic growth prospects, do not sell it because it looks temporarily too high.

3⃣ Do not fall in love with stocks to the point where you can no longer be objective in your appraisal of them…

4⃣ Do not concern yourself as much with the market in general as with the outlook for individual stocks…

5⃣ Forget about stock market “tips.”

6⃣ Remember that stocks always look worst at the bottom of a bear mkt (when an air of gloom prevails) and always look best at the top of a Bull mkt (when everybody is optimistic).

7⃣Remember that you’ll seldom if ever buy stocks right at the bottom or sell them right at the top.

8⃣ Do not buy stocks as you might store merchandise on sale (Don't buy stuff you don't like or meet your objectives)…

9⃣ Remember that the public is generally wrong (during periods of over-enthusiasm or over-pessimism)…

Ben Graham's "The Intelligent Investor" is a horrible book if you're using it purely for the quant formulas in today's Markets, but probably THE BEST BOOK if you're interested in learning about the core investing concepts, and eternal truths about the Markets & its participants.

Below are few of my fav quotes organized by topic.

1⃣ Discipline

2⃣ Investing vs Speculation

3⃣ Mr. Market

4⃣ Bear Markets

FINDING EDGE IN OPTIONS

24/08/15: Nifty gap down 250 points & another 250 after that. Previous few months return gone, but since I'm quick to take my losses, was saved from ruin. Before that my only edge in option selling was adjustments & my forever edge of following PA. (1/n)

I soon realised that theta decay with sound adjustments is not an edge, which i earlier thought was & which gave me good returns over the years. After that i went deeper in understanding volatility behaviour, how/where it manifests & all the discrepancies in option chain. (2/n)

With finding edge in logistics i mean how to keep the greeks in check, SL in place & optimum ways of adjustments with minimum slippages. So the main aim here is to write theta without following vol behaviour & having any actual knowledge of what's going on in the markets. (3/n)

A dedicated trader can learn all this in few years & it is something which is 'obvious' to become successful. But majority can't reach this level, as this also requires consistent hustle in live markets. All the seminar/webinar business teaches you till this level only.(4/n)

If you get passed this level though, the real work starts, when you have to find your real edge. This can't be taught in a webinar. It needs serious introspection of your trading skills, psychology & strategies in use, which ultimately allow you to book excellent profits. (5/n)

CHEAT-SHEET

Multiple Confirmation short.

A Short Entry that we shared in 2020.

Study it point wise.

1. Bearish Candle type and lowering of volume on Price rise.

2. OBV divergence.

3. Accumulation with Bearish candles and Volume increase on Price decrease.

STUDY IT!

Explanation

1. When price increases with a decreasing volume, it's bearish.

2. OBV, On Balance Volume should be correlated with price.
If price increases without similar increase in OBV, it's bearish.

3. During consolidation, if the volume increases during dumps, it's bearish

My number 1 stock pick for 2021 is: Pine Island Acquisition Corp.

$PIPP

Let me break down why I think this will be THE SPAC of 2021. 👇

TL:DR – the management team is loaded with President Biden’s closest friends and advisors. No other SPAC has this level of access.

$PIPP company overview:

-focused on defense, government service & aerospace
-perfect focus when you consider who is on their Management Team

$PIPP Management

-here's where it gets EXCITING
-founded by John Thain (ex Merrill Lynch CEO and Uber director)
-then STACKED with veteran Government and Administration key figures

$PIPP Insane Management Connections

-the list of PIPP "DC Partners" includes:

-- President Biden's pick for Secretary of State (Tony Blinken)
-- President Biden's pick for Secretary of Defense (Gen. Lloyd Austin).

$PIPP - The Joe Biden Connection

- Tony Blinken and President Biden are close allies.
- Blinken has been an advisor to Biden for decades
- Blinken set to be appointed Sec. of State

If you really want to make MONEY in markets:-

Instead of finding SUPPORTS to BUY in Bearish Markets, try to SELL near RESISTANCE in PULL BACKS.

Instead of finding RESISTANCE to SELL in Bullish markets, try to BUY near SUPPORT in PULL BACKS.

You are all set to make MONEY!!!

A small thread on momentum investing and how I practice it.

I use the Nifty 500 universe for selecting my momentum stocks. Nifty 500, as the name suggests, has 500 companies in it. WRONG !!!! It actually has 501 companies. Yes, I double-checked 🙂 So, these 501 companies is

my talent pool (if you will) from which I select the 50 best candidates that I want to bet my money on.

Ok. So, exactly, did I go about doing that.

Step 1: Start with Nifty 500 universe (501 companies)

Step 2: Eliminate all those companies which have a listing history of

less than 1 year. This eliminated 25 companies (see table).

Step 3: For the remaining 476 companies, I computed their last 12-month rolling price returns (meaning, comparison of their price as on March 31, 2022 as compared to that as on March 31, 2021, and then computing the %

gain that each of those stocks have earned. I found out the following:

a) Average return of all the 476 companies was 43.27% (meaning if their average price as on March 31, 2021 was 100, then their average price as on March 31, 2022 was 143.27)

b) Out of these 476 companies

140 companies, gave a negative return.

c) Out of the balance 336 companies, 46 companies gave single-digit returns

d) Out of the balance 290 companies, 101 companies gave a return between 10-30%

e) Out of the balance 189 companies, 55 gave returns between 30-50%