I convinced a few of my relatives and friends to invest in quality businesses for the long run by presenting the facts with examples( they are not naive and they have been in the market for 5-6 years, but don't know about business analysis) and also told them about the proper...
.....risk management and how to handle the situations during the different phases of the market, but never suggested any individual stock, finally changed their mindset.
I suggested them to invest in a bunch of quality stocks( and shared my watchlist) and not recommended any individual stocks.
I suggest individual stocks only to a few experienced friends/ relatives ( they also suggest individual stocks to me, it's like a good discussion and learn from each other)
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Thread on 25 GOLDEN RULES by Peter Lynch ( One rule per day)
Day 1:
Nobody can predict interest rates, the future direction of the economy or the stock market. Dismiss all such forecasts & concentrate on what's actually happening to the companies in which you've invested.
Day 2 :
Owning stocks is like having children, don't get involved with more than you can handle.
Day 3 :
Avoid hot stocks in hot industries. Great companies in cold, nongrowth industries are consistent big winners.
"A good decision is based on knowledge & not on numbers"
~ Plato.
While considering an investment, the basic trick is not to look at valuation as the first filter, quality should invariably be the first filter.
~ Of Long-term value & Wealth creation from equity Investing.
Pure cheapness is never a virtue, it's in quality available at an attractive price. The trick is not to buy an inferior business at a cheap price but to buy an outstanding business at a reasonable price (2/n)
When market in entirety are cheap, due to issues plaguing the whole market, quality may also become cheap. But, when an individual stock is looking like cheap,it requires greater scrutiny & Investor need to be careful, arithmetic cheapness (Low PE/PBV) is often a honey trap (3/n)