BC WISE INVESTING
Saved by @AnmolNarula11

Peter Lynch's 8 principles for beating the market

(Why listen? He averaged 29% yearly returns running a mutual fund!!!)

1/12

 1. Know what you own

This one frequently gets a "yeah, yeah" from me, but it's embarrassing how many "They do THAT?" moments I have.

Here's a test for every company you own...can you explain in detail how they make money AND how that's different than their competitors?

2/12
2. It's futile to predict the economy and interest rates (so don't waste time trying)

As I'm writing this, we're all wondering what the Fed's going to do.

You could read this a week, a month, or 10 years from now, and this would be true.

3/12
3. You have plenty of time to identify and recognize exceptional companies

Lynch mentions $WMT as an example...even way back when he wrote about it, it was a 10-bagger even if you waited 10 years AFTER its IPO.

Today, we can look at $AMZN or $NFLX.

4/12
4. Avoid long shots

LOVE this one.

It's so easy to get enamored with a stock's potential to 10-bag (e.g. hot industry, huge TAM, etc.), but we have to bump that against its chances for success.

5/12
Lynch claims he was 0-for-25 in investing in companies that had no revenue but a great story.

Combined with #3, that can mean waiting to see if the company can reach critical mass on execution and then buying at a higher future price with a greater chance of success.

6/12
5. Good management is very important; good businesses matter more

Of course, great management (especially founder leaders) can help build great businesses.

I know I didn't flinch when Jeff Bezos decided to step away from $AMZN's day-to-day.

7/12
6. Be flexible and humble, and learn from mistakes

This is different than constantly changing strategies.

Lynch: "In this business, if you're good, you're right six times out of 10. You're never going to be right nine times out of 10."

There are lessons in the losers!

8/12
7. Before you make a purchase, you should be able to explain why you're buying

...to an 11-year-old in three sentences.

Lynch: "Never invest in any idea you can’t illustrate with a crayon."

Personal e.g.: My Greenlight Framework forces me to organize my thoughts simply.

9/12
8. There's always something to worry about.

Lynch's e.g.: investors made a killing in the 1950s despite the very new threat of nuclear war.

Buffett started investing DURING WWII.

Lynch: "In the stock market, the most important organ is the stomach. It's not the brain."

10/12
These lessons sound SO simple and obvious

In a sentence, he's saying...

Focus on patiently, humbly, consistently vetting and buying great companies.

But executing them is SO hard.

Revisiting this list from time to time helps me.

11/12
More from me...

https://t.co/atO9nThDj1

https://t.co/cufyjakuTR

12/12

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I have seen plenty of Buffettology on Twitter and in other places over the past few years. Its time to clear the air and understand that there wasn't one but 3 different Warren Buffett's that existed throughout his career 📚📚

Time for a thread: 3 Different Buffett's 🧵🧵🧵


One of the biggest mistakes that you as an investor can make is to forget the basic and the most important mental model an investor can have: Numeracy. Being fluent with numbers and respecting the context in which Buffett made his returns.

At the beginning of his career, let's call this Warren Buffett 1 i.e. Between 1957-1968. This was the time when he was working with small sums of money. He was extremely valuation conscious and guess what. How many stocks did he buy and sell between this period?

In this period, he bought and sold nearly 400 stocks. He bought Geico and sold it within 18months, he bought Marshals wealth at a PE of 3 times and he bought Commonwealth at a PE of 5times and sold it at a 60% gain. His returns were mind-boggling too during this time period

No Wonder he said, “The highest rates of return I’ve ever achieved were in the 1950s. I killed the Dow. You ought to see the numbers… I think I could make you 50% a year on $1 million. No, I know I could. I guarantee that.” Look at the performance once
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Sustainable wealth is not made by chasing cryptos or overhyped IPOs.
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Investing tid bits...

Being an investor does not mean your Investment decisions are based on quantity or no of investments per quarter or year. It is all about Quality of investment decisions.

It may be just 1 or 2 per Q/HY/Y
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@soicfinance
Out of 17 stocks that I own, I am allowed to go wrong in 2-3 of them. Not going wrong shows that you are not taking enough risks or operating on the edge. Learning from mistakes is the number 1 way to improve as an investor. An excerpt from the annual letter :)
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@Namajapa In my experience value stocks are the ones with undervalued optionality - the possibility things get unexpectedly better. Expensive story stocks by contrast anticipate and price in all manner of good future outcomes long before they are actually delivered/deliverable.
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The Swastik is a geometrical figure and an ancient religious icon. Swastik has been Sanatan Dharma’s symbol of auspiciousness – mangalya since time immemorial.


The name swastika comes from Sanskrit (Devanagari: स्वस्तिक, pronounced: swastik) &denotes “conducive to wellbeing or auspicious”.
The word Swastik has a definite etymological origin in Sanskrit. It is derived from the roots su – meaning “well or auspicious” & as meaning “being”.


"सु अस्ति येन तत स्वस्तिकं"
Swastik is de symbol through which everything auspicios occurs

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"🕉स्वस्ति ना इन्द्रो वृधश्रवाहा
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