Being a toxic critic is very easy. Doesn't take much effort. But, being a helpful critic is difficult.
A helpful critic:
- Points out flaws in your arguments
- Respectfully disagrees
- Puts forth his/her side of the argument neatly
- Adds value to the argument with expertise
It's easy to criticise from the sidelines that someone is wrong or that something is stupid.
It's 10x easier doing that anonymously.
It's 100x easier being a troll.
There's no skin in the game.
For ex: If you have expertise in a subject, and you find someone make mistakes in what they share in your line of expertise, if you only troll that person - you're a toxic critic. If you hop on and help them improve what they share, or add to the discussion, you're a helpful one.
So, when it's utterly easy to be a toxic, hateful, and negative critic on this platform (or anywhere for that matter) and go unhinged, try and have some skin in the game, and be a helpful critic if you want to be one. Prioritize adding value before adding to negativity quotient.
By all means call out people preying on other people's weaknesses or naivete and swindling money. Call out charlatans who copyright someone else's content as their own.
But there's a fine line between criticising the idea vs attacking the person. Don't mix up the two.
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This is going to be a thread about **Moat** and **Competitive Advantage**.
1. Capitalists seek the highest returns possible. For any possible investment, you need to maximize the return on investment while minimizing the risk involved. The sweet spot is what you strive to get.
2. You run a business to make the highest profits that you possibly can. If you're smart, you won't start or invest in airlines.
3. Most businesses that see highest returns on capital will attract competition. When competition comes in, return on capital decreases.
4. Very few companies beat the odds, defy economic gravity. Competition destroys excess returns.
5. MOAT comprises of structural and sustainable qualities that are inherent to the business. Moat isn't a hot product, not a cool piece of tech, not the biggest market share.
- Avoid following/unfollowing people. Curate people in form of Twitter Lists and categorize handles based on the type/topic of content they post.
2. Consume 20%, Create 80%:
It's easy to get lost in Twitterville.
It's easy to keep on consuming without adding any value to your life and/or others' lives. So, be mindful of endless scrolling on Twitter, and share whatever you learn and consider as valuable.
3. Twitter DMs:
DMs on Twitter is the most powerful feature. If you do it right, you can get access to your idols, and even get to exchange ideas, and get their feedback on things you're working on. But, before taking value, offer value.
Unpopular opinion: Theaters are here to stay. Netflix, Hotstar, etc., can't kill theater business.
1. People will watch movies and TV shows on OTT, and many will miss the theater experience. So, going forward, theaters that are selective about filming good content will survive.
2. Going forward, we can see a decline in superstardom and star worship. In the age of OTT, content will become king, and many good actors and writers will be discovered. These will then be rewarded.
3. With OTT in play, the size of the pie will increase, with increasing budgets for original productions. Big production houses will also realise that they can no longer make do with big star names and sub-par content, and they will have to mend their ways.
This is ITC chart in 2020. It's interesting that volumes have significantly risen in ITC in 2020. The price has been in a range between 125-130 range to 200-210 range.
Those big red volume candles you see when day closed negatively? They hold some information too.
The information contained within those big red candles is that in each of those big red candles on negative closing days, delivery volumes have spiked up 2-3x the average days.
So, we have the following facts:
- Price has been staying in a tight range.
- These big red volume candles suggest significant selling.
What does this mean?
A) Huge quantities were being sold
B) That also means similar quantities were bought.
I am neither pro-ITC nor against. I look for maximum pessimism in market as an attraction indicator.
Around march 3rd week, there was so much pessimism and people were calling for 3500 in Nifty, Nifty breaking 6000, etc. I went in and added sizable amount in PPFAS LTE fund.
ITC is not yet there at the maximum pessimism zone. But it's quite there. Looking at how much pessimistic noise is there around ITC right now, and how company is moving fast with their goals, the maximum pessimism point is somewhere around the corner.
Here, it's important to remember how big institutions, fund managers, and operators operate.
- When big money wants to accumulate, they put operators and market makers into play to keep the stock steady in a range over few months or more, supporting their purchases.
This book "Education of a value investor" by @GSpier is a must read for everyone who wants to be a better investor.
From how superior self-awareness aids with investing process to how mentors and idols form a huge part of your growth in this field, this book has immense wisdom.
1. Use compound interest to your favor. Compounding at any rate consistently, year after year, your wealth increases over a period of time exponentially.
2. You can compound goodwill too. In this field, goodwill and relationships are of paramount importance.
3. Charlie Munger's talk - "24 standard causes of human misjudgement" - listen to this as many times as it takes for you to imbibe all the values in the talk.
4. Humans are irrational. And, the market runs on that irrationality. The rational few take the major pie of profits.