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
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 🧵🧵🧵🧵
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
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
Unlike cyclical stocks,, timing the purchase is not critical. Most of these trends last for a long time. Betting on the right management and holding through periods where the business keeps moving forward, but the stock price remains
"When I started investing, I thought there is some magic formulae to grow your capital. After 10 years of search, I realized that the answer was staring me in the face.
More from Intrinsic Compounding
Sequent will teach many people about what Hyperbolic Discounting and Myopic Loss aversion means. 2 Mental models which an equity investor has to understand about. No other way. Disc: invested, not a reco
Having multiple facilities accredited with certifications from the best authorities from globe is a hidden moat in itself... 10-20% pop and then retracement should not shake confidence... Business focus and longevity should build conviction
— Harinder S Nanda (@harindersnanda) July 14, 2021
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