@iancassel Thanks Sir for amazing insights as always.

To fight some of these "bad demons" I keep doing experiments like averaging up..

Also, during feeling of high PE or market overvaluation, I try not to take profit, but trail exit and give room of 20-35% drawdown to excellent businesses

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

✈️🚀

What is that 1 company that you see awesome growth for atleast next 5 years?

Comment below...

#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

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

Must read #TechnoFunda books:

Invest in Yourself

https://t.co/qPVhlS7gGx

#investing

Key Learnings from one of the best Investing Letters that I have read this year from @rohitchauhan

Time for a thread with SOIC Key Takeaways 🧵🧵🧵🧵

First Key Learning:

The first is the importance of getting the trend and its timing right. No business does well in isolation, it is a part of a much bigger trend. For eg:In sectors like API/CDMO/Chemicals, many businesses have created wealth. As they are going through tailwinds

Thus,It becomes important to identify long-term trends like manufacturing, Financialization of saving, or Formalization of sector (think PVC/CPVC Pipes) and to be patient. Long-term trends keep offering opportunities. Just think about it- if its truly long term, then the

Opportunity will exist for a long period of time no?

Second Key Learning:

Look at Valuation in a broader context and not in isolation. When a sector catches fancy of the markets, and earnings growth is strong in the entire sector. Most of the time, markets start discounting

the earnings and reward the business with a high multiple. As long as the trend holds and management is executing, one should hold the stock and be tolerant of higher valuations 💯💯💯

I see a trend on SM of retail investors trying to copy stock ideas of those whom they view as knowledgeable investors. Please DO NOT do this. Do your own research & build/follow your own process. Buying a business on borrowed conviction is a terrible idea. 1/n

If you’re lucky, you’ll end up copying someone like @ishmohit1 or @itsTarH who are open about their thesis/anti-thesis pointers and entry & exit from a position. If you’re unlucky you might end getting manipulated or left with outdated info about someone’s invested position. 2/n

Either way, u cannot clone someone’s conviction, which is why you’ll never get their results. Better 2 make modest returns with conviction based on ur own research, instead of trying to clone others. Network, share ideas, data & views. But say NO 2 copy-pasting stock ideas. 3/n

If you respect & r impressed by someone, please study their process. Copy the parts that work for you. In the end, you get the results that you’ve earned. Taking the lazy approach of बस stock बता दो will never make you wealthy. Invest in yourself & the results will follow 4/n

Your view of the world and markets can change significantly when you close out your derivative positions and trading/leveraged trades v/s only hold a delivery-based portfolio.

The reason is psychological. The quick gains and losses that leveraged trades bring make you react with the same emotions you do in a regular portfolio at a faster rate. So what a 30% drawdown would make you think on a delivery portfolio ends up happening in days.

Suddenly you will find it easier to believe that negative conspiracy theory-based video or blog post than you would have otherwise.

It is therefore always a good idea to have an investment portfolio outside your trading positions to help you keep perspective of the big picture and ask the right questions.

The trading then is a subset of the big picture. Bull market cycles often go on for years and go through many bouts of hope and fear themselves. But stocks hold out better making higher highs and lows as long as the trend is intact.

@abhishec_s @Sanjay__Bakshi The most rational course of action is to buy below your expected value, hold when it's between your expected value and overvalued zone and sell above overvalued zone (No in-betweens or holding extra cash).

But there are many impediments in executing each step.