when a stock you own becomes expensive, you rationalize holding on by calling it a compounder. base rate says v v few stocks are real compounders , rest are just pigs with lipstick.

@SunDudez @Iamsamirarora Even if one had invested when Infosys valuations' were at its peak, one would have still made index-par returns in hindsight

@Bapu__Mishra hardly. 30-40 stocks is fine

zomato reports larger loss than previous quarter

analyst prepping for concall: sir, what is the reason for the loss with rebound in sales and expected operating leverage.

zomato: sorry we don’t hold concall

Charles Kindleberger: “There is nothing as disturbing to one’s well-being and judgment as to see a friend get rich”

I always knew that aiming low was the best path for me, and so I merely sought to learn from my betters a few practical mental tricks that would help me avoid some of the worst miscognitions common in my age cohort.

Prediction is an addition in financial world many suffer from

Sorry, addiction

@InvestmentBook1 @may27capital @soicfinance @Investmental1 Added watchlist, for weekend 😊

Live tweeting highlights from our discussion with @SamitVartak moderated by @ishmohit1 and the DIA gang. @saket1974 @saketreddy @dadalife369 @cautkarshpandey @vishal_chandi

So let’s begin -

1. Before looking at the valuation of a business, look at the fundamentals first.

On cyclicals -

2. We look for profit power, the ability of the company to control price and gauge profit. This is why we don’t look at cyclicals.

3. With cyclicals, oftentimes the promoters themselves cannot predict pricing and profitability.

On building a portfolio -

1. Reducing the size of your portfolio too much can make it harder to find big winners, the ones that can give up to 40x in 10 years.

2. I look at 15-20 stocks as a balance between not spreading yourself too thin and not takeing too much risk.

On taking away market share -

1. Creating disruptions and innovating with new products allows you to take away market share. Example #APLApollo and the DFT technology.

2. Cash cows don’t deliver outsized returns for an investor. Aggression and innovation is needed.

On themes -

1. It is very difficult to pre-empt a theme before it happens and predict how it will play out. Instead of that, I look for data.

2. Deleveraging and capex is taking place. Companies have become lean in this period.

What should your goal be as an investor?