“Sometimes you climb out of bed in the morning and you think, I'm not going to make it, but you laugh inside — remembering all the times you've felt that way.”

https://twitter.com/abhishec_s/status/1543117855889113088

Q: What are you proudest of?

Munger: I am proudest of avoiding things I don’t like.

Be willing to get burned, willing to look bad. Don’t forget your “why”. Put your head down everyday and bite on the nail. Fall in love with the boredom of practise.

Hard work really, really matters.

'Always do what's right.

This will gratify some people and astonish the rest'.

Read 25 tweets

abhishek

@abhishec_s

Jul 2, 2022

Views on Investing & Investment Management Industry:

(developed/borrowed/collated/adopted)

They resonate strongly with me. But you have to keep reminding yourself as the world is always tempting you to abandon them.

👇

I find it challenging to get even one good new idea in a year.

When I started I could find something everyday. I am no longer young enough to know everything.

If you understand ‘margin of safety’ whatever else you know should be enough.

If you don’t understand it - everything else that you know will end up hurting you.

Read 26 tweets

abhishek

@abhishec_s

Mar 12, 2022

The Price You Pay - Matters.

In the last few year, you have probably been told that

"Valuations don't matter.

New businesses need new valuations metrics. Some old businesses will keep compounding at 25% ad infinitum".

Let's look at the data.

1/n

The chart of Amazon PE is not "evidence". Stop this nonsense already.

How do you go about testing the hypothesis that 'valuations don't matter'?

Pick a well defined universe & run a systematic strategy that buys expensive/cheap stocks.

2/n

Returns of deferent deciles of NSE 500 universe from most expensive to cheapest on forward PE. Equi-weighted & re-balanced quarterly.

Most Expensive D1 makes 20.5%
D9 makes 29%

9% Difference. Every Year.

Why not D10 (still beats D1) - a very good reason. Can you guess?

3/n

Read 6 tweets

abhishek

@abhishec_s

Oct 24, 2021

“How should I invest”?

I have recently been getting this question a lot from friends and family (last year I was a persona non grata).

This is usually how I answer.

👇

Can I make “just 20% to 25% a year” in stock markets?

No. You can’t. If you try this, you will lose all your capital. You can take my word for it or learn the hard way.

Take my word.

(3 people asked me this just in the last one week)

2/

8.5% 13.5%

Those are the historical returns for (safer) debt and equity. Currently debt returns are even lower.

Assuming this is the return you get in future, you will make 11.5% for a 60:40 Equity:Debt portfolio.

These are good returns if you give it time.

3/

Read 13 tweets

abhishek

@abhishec_s

Apr 9, 2021

4 Quotes from Jamie Dimon’s 2021 Letter

Accept failure as a “normal” recurring outcome.

1/4

Develop great models but understand they are not the answer — judgement has to be involved in matters related to human beings and extraordinary events.

2/4

Sometimes the action you take may not be the one that gives you the best outcome but the one that gives you a good outcome and reduces the possibility of bad outcomes.

3/4

Read 4 tweets

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