Thread by @ViaWealthy

Thread:

The unconventional & non-bookish side of Investing:

Few findings over our a decadal experience in the markets 1/n

Price is not God. But nothing less than God.

2/n

Being contrarian is sexy. But you can't build an entire portfolio of contrarian bets & hope to beat the market.

3/n

Price follows Fundamentals. Also in most cases Fundamentals follows the Price (especially in Banking & Financials).

4/n

Two sentenses that made most of the losses (actual & notional) to the investors:

"The bad news is already priced-in"

"The growth is already priced-in".

5/n

High Valuation is a good problem to have, when compared to the comfort of Cheap Valuation. There is a reason for it. Respect it.

6/n

Madness of crowds is overrated. Wisdom of crowds is underrated.

7/n

Deep Value investing works the best in Text books, not so well in real markets. Don’t expect that the Rs. 100/- note on the street is ONLY visible to you.

8/n

Accepting the fact that Quality comes at a cost. If Almond is selling at the rate of Peanut, then most probably that is not Almond. Don’t be the Patsy.

9/n

If there is an earth quake in a stock better run from there, than to stay and analyze the impact on richter scale.

10/n

Measuring Corporate Governance is not about Low PE or High PE - Its about if the Balance sheet is a Piece of Paper or a Tissue Paper.

11/n

Quality without growth is like brand new Rolls-Royce without engine. If Growth comes back to Quality, then it demands your attention.

12/n

It makes sense to onboard a running bus (trend) than to get into the bus & wait for the driver to come.

13/n

Getting way too early into the trend is as bad as getting too late into it.

14/n

The longer a perception survived, the stronger it is. Do not try to prove it wrong, it will be very costly. Respect the perceptions & look out for exceptions.

-End-