Good introductory article for those interested in Behavioral Finance.

Stuff we should care even more about, when Markets and our Portfolios are at All Time Highs.

corporatefinanceinstitute.com/resources/know…
The differences between Theory and Markets.
Classification of decision-making biases and errors in the above article.
Top 10 biases in the article. Brief descriptions and in-depth articles included/linked in the article.
My views w.r.t Behavioral Finance - Don't go overboard reading tons of books/articles on this stuff, but observe the most common/impactful mistakes you're making, and others too, study the reasons behind them, and improve the process so that you can minimize those mistakes.

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More from @RamBhupatiraju

30 Dec
When people say "Valuation doesn't matter" is precisely the time we need to be more cautious and know the difference between (Intrinsic) Value & (Mkt) Price.

Excellent Site based on A. Damodaran's "The Little Book of Valuation"👏

@dmuthuk @Gautam__Baid

people.stern.nyu.edu/adamodar/New_H…
Topics ⬇️

✔️Intrinsic versus Relative Value
✔️Time Value of Money and concept of Discounting
✔️Accounting 101
✔️Mechanics of using Intrinsic Value versus Relative Value Image
Characteristics, Value Drivers & how to Value Co.'s in various stages of their Life Cycle

✔️Young Growth Co.'s
✔️Growth Co.'s
✔️Mature Co.'s
✔️Declining & Distressed Co.'s

Valuing Co.'s in few other Sectors
✔️Financial Services
✔️Commodities & Cyclicals
✔️High Intangible Assets Image
Read 9 tweets
27 Dec
Excellent in-depth article about Moats by @CBinsights👏

Studying the Moats/Management (real engines behind enduring growth & returns of great Co's over time) is a fascinating subject.
@richard_chu97 @saxena_puru @FromValue @dhaval_kotecha @adventuresinfi

cbinsights.com/research/repor…
Content ⬇️
Network Effects🕸️ : Marketplace, Data and Platform
Read 9 tweets
27 Dec
Just sharing this great blog "The Good Investors - Singapore" & some of my fav articles. (Not sure if they are on Twitter).

Very interesting/useful stuff for individual, long-term investors.👏

@saxena_puru @Gautam__Baid @dmuthuk

1⃣ 17 Investing Lessons

thegoodinvestors.sg/saying-goodbye…
Pts from above article.
2⃣ 24 Things Every Investor Should Know About Investing (To Become Better)

Some great pts on
✔️Market facts
✔️Investing psychology
✔️How to invest

thegoodinvestors.sg/things-every-i…
Read 8 tweets
25 Dec
Investing in its purest sense (Analysis of Intrinsic value, buying with Margin of Safety) has been out of fashion recently, but here's an excellent resource for anyone interested in learning the core concepts.
h/t @Vintage_Value👏

@dmuthuk @Gautam__Baid

vintagevalueinvesting.com/wp-content/upl…
Content ⬇️

✔️Main Concepts of Value Investing

✔️Famous Value Investors (Graham, Buffett, Schloss, Klarman, Marks, Burry...)

✔️How to value a Stock

✔️Qualities of Great Companies (Enduring, High ROIC, Economic Moats)

✔️Behavioral Finance

✔️Recommended Reading.
Core concept
Read 8 tweets
23 Dec
On Seeking Alpha, "Integrator" (not sure about Twitter presence) is one of my favorite authors along with
@FromValue
@andrescardenal
@EconomyApp
Bert Hochfeld
👏👏

Few of my fav articles of his.

1⃣ The 5 Elements That Make For An Outstanding Business

seekingalpha.com/article/435687…
2⃣ On Lessons from Buffett.

-Seek Economic Moats in any investment
-Having an awareness of your circle of competence
-Investing for the ultra long term
-Take advantage of a bargain hiding in plain sight
-Preservation of Capital, Above all

seekingalpha.com/article/436733…
3⃣ 5 Common Mistakes In Evaluating High-Growth Companies

-It has already gone up so much.
-Fearing short interest
-Fearing future Competition
-Fearing stock dilution due to secondary offerings
-Fearing current losses

seekingalpha.com/article/437064…
Read 10 tweets
23 Dec
Learning Market history & correlations/lessons within is important for long-term success.

Nice article with historical perspective of US Mkts (from 1970s) & some long-term lessons. (Ignore the promotional parts by the author).

@saxena_puru @Gautam__Baid

markskousen.com/seven-golden-l…
LESSON #1: Government policy can greatly affect your investment portfolio, for good or ill.

LESSON #2: Bull markets climb a wall of worry.

LESSON #3: Don’t fight the Fed. Adjust your portfolio when money is tight, and again when money is easy.
LESSON #4: Gold is money and the best insurance against an inflationary future and bad government policy, but don’t go overboard buying gold. (Not for everyone, but the author mentions that it should be done only as insurance. I guess Bitcoin is the proxy for it these days).
Read 8 tweets

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