Given where Indian small caps are today, this book is a very reasonable investment. Go for it 👍🏻 
Best time to look for a multi-bagger is around the time when masses start to find the word 'multi-bagger' as disgusting. This masterpiece from @chriswmayer is inspired by Thomas Phelps's "100 to 1 in the Stock Market" and is an addition to that with more recent data. #100BAGGERS
“Bear market smoke gets in one’s eyes,” he said, and it blinds us to buying opportunities if we are too intent on market timing. [1]
"In Alice in Wonderland, one had to run fast in order to stand still. In the stock market, the evidence suggests, one who buys right must stand still in order to run fast.” [2]
So the lesson is one needs to stick to the original theme and if it is intact just hold on......
One needs to isolate the common threads and place one’s bets on the table after much research and conviction then hold on......
Key here is the idea that you must sit still. [3]
One needs to isolate the common threads and place one’s bets on the table after much research and conviction then hold on......
Key here is the idea that you must sit still. [3]
Once you've done your homework - it's time to sit on that asset for as long as the original thesis holds (assuming you don't need funds).
Remember - the downside in any stock is CMP, but the upside could well be unlimited. As @MrMotilalOswal says - "Buy Right, Sit Tight" [4]
Remember - the downside in any stock is CMP, but the upside could well be unlimited. As @MrMotilalOswal says - "Buy Right, Sit Tight" [4]
People don't hold stocks long enough, because, it is the daily volatility and erratic price movements that move their perception and conviction to hold!
[5]
[5]
Microeconomics usually helps | Macroeconomics mostly misleads
Warren Buffett himself once said, “If Fed Chairman Alan Greenspan were to whisper to me what his monetary policy was going to be over the next two years, it wouldn’t change one thing I do.”
Warren Buffett himself once said, “If Fed Chairman Alan Greenspan were to whisper to me what his monetary policy was going to be over the next two years, it wouldn’t change one thing I do.”
Digesting the quarterly or annual earnings - apply some #SecondLevelThinking
Learn to separate the ephemeral earnings setback from the real thing. The more important thing is to assess the long term free cash generation growth probability, likely timing and quantum of that cash.
Learn to separate the ephemeral earnings setback from the real thing. The more important thing is to assess the long term free cash generation growth probability, likely timing and quantum of that cash.
Not all stocks are likely to come back, after a deep correction❗️
Whitman's 3 broad categories:
1. Were grossly overpriced (particularly low-quality)
2. Suffered permanent impairment (e.g. - accounting fraud)
3. Massive equity dilution (bailout attempt on high-debt businesses)
Whitman's 3 broad categories:
1. Were grossly overpriced (particularly low-quality)
2. Suffered permanent impairment (e.g. - accounting fraud)
3. Massive equity dilution (bailout attempt on high-debt businesses)
You need a business with a high return on capital with the ability to reinvest and earn that high return on capital for years and years.
Permanent impairment can be broadly classified into 2 buckets 👇
a) Corporate misconduct
and/or
b) Excessive-debt on books
High debt is emotionless. It does not care if you’re a small/mid/large-cap.
DHFL, YesBank, Manpasand, Talwarkars, MTNL, ADAG, Suzlon, Punj Lloyd ++++++
a) Corporate misconduct
and/or
b) Excessive-debt on books
High debt is emotionless. It does not care if you’re a small/mid/large-cap.
DHFL, YesBank, Manpasand, Talwarkars, MTNL, ADAG, Suzlon, Punj Lloyd ++++++
