15 lies that the world feeds every investor...!!

A detailed thread...

#investing
Lie 1:
Stock market is gamble

Earning Hard way is the only way for common man..

It is only for smart people who can take risks
Lie 2:
If you want to do long term Investing, you should know it all

You should know all the sectors, need lot of time...

You need to attend AGMs, concalls and read a lot..
Lie 3:

I you are a long term investor, you should have PATIENCE

It's okay if you don't earn any return for few years
Lie 4:

If you are averaging down when price falls, you are getting better deal..

You are basically buying same company at cheaper price...

Not always...!!
Lie 5:

Technical Analysis is only for speculators - day traders and F&O guys

Investor should stay away from it...
Lie 6:

SIP is the safest way to invest...

If you invest directly, there are greater risks

Higher return can only be generated by taking higher risks..
Lie 7:

If you are working professional, it is better to give your money to Mutual Fund, PMS or advisory

It's difficult to invest directly
Lie 8:

Unless you have invested big chunk in real estate, you should not think of investing in equity...

Even if you do, put very small amount in initial years
Lie 9:

FDs are safest instrument...and they can help us in compounding money with least risk..

Well...think again
Lie 10:

As an investor macro factors don't matter...think stock specific...

If company will grow, automatically returns will follow
Lie 11:

If you buy quality company, risk of losing money is gone...

Sooner or later you will make money if you are invested in quality company...
Lie 12:

It is always good to BUY ON DIPS to reduce your risk...

This way you get better price vs. value when stock is falling

Corrections will not last more than few months...it's okay..

This time is different..
Lie 13:

If you are long term investor, you should not look at returns...

Sooner or later you will earn if you stay invested
Lie 14:

Long term time correction is our friend, we can accumulate our favourite companies

If we have conviction it doesn't matter
Lie 15:

When you are getting something very cheap in bull market, just grab truck load of it...

Sooner or later market will realize it's true value
"The stock market is never obvious. It is designed to fool most of the people, most of the time." — Jesse Livermore

Learn more with me: technofunda.co/telegram

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More from @MashraniVivek

1 Nov 20
💥

Some unbelievable memories of Market fall n rise during Covid captured in pictures..

LIFETIME LEARNINGS

Do share if you have any..

How fast times change...

1. Brent spiked >40% in a day..

(1/n)

#investing
2. Gasoline...scary ride..

Who said being a good trader is easy?

@Amit_Gulecha @asitbaran

(2/n)
3. This was bloodbath in Indian Banking sector...

Who said value investing is easy? How many value investors could buy here

@suru27 @Longterm_wealth

(3/n)
Read 9 tweets
30 Oct 20
A super awesome thread on megatrend that is shifting the world in drastic way...

What's that??

These are platform businesses....

What is platform business? How is it changing our lives? How does it matter to me as an investor??

READ ON TILL THE END..This is powerful..

(1/n)
First of all let's look at industrial age...what was happening with tata motors, bajaj electricals, reliance etc.??

You have PIPELINE model of business.

Raw material >> Components >> Assembly >> Distribution

What was the focus? >> How to make this supply chain efficient
(2/n)
You had all these part of your life...Bajaj, Tata, Aditya Birla, Pidilite, Asian paints, colgate etc.

And they created huge wealth for shareholders...MOST IMPORTANT RIGHT...

And they were able to scale in right way..

(3/n)
Read 12 tweets
29 Sep 20
🧭

Protecting Downside and Capital Protection ensures best investing outcome

Here is the thread to understand various accounting manipulations and checks you should do...

>> First things first - CAPITAL PROTECTION is of utmost importance...

Signs that raises eyebrows:

(1/n)
- Frequent changes in auditor

- Strained relationship between promoters and auditors

- Disputes with auditors

- Frequent resignations from CFO / auditors / Independent directors

Example: bit.ly/3kU9VFh

These are early warning indicators

What's NEXT? Read ON

(2/n)
3 pillars of financial statements - Income statement, Balance Sheet, Cashflow statement

Bottom-line:

ALL 3 should tie-up with EACH OTHER....

Here are checks specific to each..

(3/n)
Read 11 tweets
15 Sep 20
💥

What happens when you go behind DIVIDEND YIELD ignoring GROWTH...

Educational thread based on learning from Mr. Market...

No recommendations..

Case 1 - COAL INDIA

In 2017 approx dividend Rs. 20 >> Price ~250; Yield 8%..

You might think its better than FD+tax free

(1/n)
Next year dividend ~16; Price in 2018 ~270; Yield ~6%..

You say not bad...interest rates are down...so still better than FD...

You see bit of current growth in PAT and say to yourself..market is wrong...I am SMART :)

(2/n)
Fast forward in 2019...price ~220, Dividend ~15...Yield ~7%...not bad...still beats FD...

Growth still ok...you say...Acche Din Ayenge...console yourself with dividend yield

(3/n)
Read 10 tweets
1 Apr 20
Lessons of bull market....thinking to create a thread where I will keep posting on euphoria phase we all had been into.

No offense to anyone, we all are human and we make mistakes, just for serious learning.

1st one - euphoria on housing finance

(1/n)
rakesh-jhunjhunwala.in/after-dolly-kh…
Second: Quest of multi-baggers in microcaps in 2017.....even after fall people had contrarian views that this space will bounce back...

(2/n)

rakesh-jhunjhunwala.in/24-micro-cap-m…
This just a snapshot of kind of value destruction that has happened in microcap space...

Source: @screener_in

(3/n)
Read 12 tweets
12 Mar 20
Was studying some historical falls to draw some meaningful patterns if any, let's take 2000 dotcom crash...Nifty fell from highs of ~1800 to nearly ~850 i.e. 50%+ down...and initial falls were not as severe as currently what we are witnessing + it had multiple pullbacks (1/n)
(2/n) RSI gave multiple oversold signals, infact premature and after each signal it kept falling 15-20% more...again with multiple tiny pullbacks...again note that to breakeven 50% fall you need 100% upmove....200 WMA were meaningfully broken..now let's take example of 2008
(3/n) In 2008, from highs of ~6250 nifty fell to ~2250, almost 60%+ fall...again with multiple pullbacks & some really sharp moves at the end of fall...again RSI near oversold zone multiple times..200 WMA broken meaningfully..remember to recover 60% fall you need ~3x to breakeven
Read 6 tweets

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