2/n Being a govt doctor working on the field most of the time he rarely put in effort to do any detailed analysis. He tried his hand at a business & failed miserably. Went back to job.
His learning - give money to people who can run businesses efficiently.
3/n You can never create a business in 1-2 years. It takes decades. So why do you think you will make returns in a few months? He bought stocks with the expectation that for 5+ year nothing would happen.
This is what the world's richest man says & does.
4/n Once stock certificates were obtained they would go into the briefcase only to see light once a year. Never keep counting the M2M value of your portfolio. If you want to speculate buy lottery ticket. He did so for me a couple of times!
5/n His biggest learning: avoid Debt. This was the reason his business failed. This reflected in his stock choices. He didnt know Peter Lynch in the 90s but he said the same thing as Lynch - Very difficult for a debt free company to go bankrupt
6/n When crisis comes, he has seen Harshad, Ketan, dot com, GFC, covid, try to give more money to those businesses which will survive. Always invest your salary & then expense the leftover.
7/n Out of 10 stocks 5 will give poor returns, 3 average and 2 super returns. Don't expect every stock to make money. In entrepreneurship most fail.
8/n Always watch news, read papers etc. they keep you busy & informed. But the trick is that this 'information' is for mostly entertainment. He doesn't know what an Analyst is.
9/n Humans by default are good at heart. Each one's action could be good or bad. And we should learn from the good & bad both. Similarly all businesses try to succeed but some make poor decisions not by choice but by circumstances.
10/n Never sell. He didn't know the term coffee can but his briefcase served as one. He has sold stocks only once I think when that was to send my brother to NYU Law School.
11/n Last but most important: Always know that this is not a game of competition or to become filthy rich. It is to have a comfortable life & help others have a comfortable life too.
12/n He gave up his job around dot com period & didn't work thereafter. He today works 15-20 hours a week, mostly free eye checkups (he is an eye surgeon) & also runs a small NGO giving housing & healthcare @ 100-200 per month.
13/n His advice to me: Keep buying in times of adversity. Buy index funds only. He was surprised to know such a thing exists. Always assume you are average & you need to read more. Money is not the end. Enjoy your hobbies & family time. Also no advice is 100% correct always.
14/n p.s. I don't believe in coffee can. Also I only partly invest in Index funds at the moment.
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Make a consolidated mail for them. And tag that mail in their inbox. For instance my wife has a tab "DV" & color code it. Do this for your sibling & parents if possible
3/ MY NSDL CAS statements get forwarded to my wife and her statement to mine. I have maintained sporadically though CAS statements in a google drive folder to which both of us have access. As investors your close ones should know every single investment you have.
Short notes from the book 'Dead Companies Walking' by Scott Fearon.
I think this is a must read book for all investors to understand when to stay away from a company even if you don't want to short it.
2/n Things go wrong more often than they go right. Failure is actually a natural - even crucial - element of a healthy economy. And the people who are willing to acknowledge that fact can make a hell of a lot of money.
3/n One of the most enduring & important business traditions is failure
1/n A look at the oldest companies & earliest traded stocks
The 1st stock exchange was established in 1602 in Amsterdam. It was made by the Dutch East India Company, chart below
The south sea bubble of 1720 can be seen. The company lasted under 2 centuries & finally went bankrupt
2/n Another company traded in Amsterdam was The Dutch West India Company which also went into bankruptcy in late 1700s. In the chart below we can see both the Tulip mania & the South Sea Bubble.
3/n But these two companies are no match for the oldest companies which exist till today. They could have merged. Some are listed via the new parent too. The types are: