@safiranand 4. Corporate governance.
Something which is completely ignored in bull market.

One day one black Swan event shows "Years of cumulative cash flow don't belong to minority shareholders"

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 💯💯💯

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 :)

Everyone is a genius in a Bull market. Don’t confuse luck with skill .

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