Thread by @prjewel_

Anil Goel - Value Investing
(Mega thread)

Book- Master Class with Super Investors.

Thanks to @ms89_meet for recommending this book.

@dmuthuk @stockifi_Invest @Rishikesh_ADX
@utsav1711 @FundamentalGems @Jitendra_stock
Share your insights 😇.

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1.Key to Investing in stock market is to understand the business and more importantly, understand the management.

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2. One of the main strength in successful investing is the Power of Observation. One should focus on why things happen.

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3. Strive for an extreme amount of learning and having a lot of patience.

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4. One should have deep knowledge of business and that’s how one will develop Conviction in one’s assessment, then one should need patience for the market to properly value your stock.

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5. One has study the business so deeply that one’s vision becomes better than that of the promoters, from stock market perspective. We can forecast their business better.

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6. Don’t invest for normal return of 15-20%, but look for a multiplication of capital. We look to make five to ten times over the next few years.

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7. Look for businesses having growth, the management is good and is sharing dividends with shareholders, and that is available at very low valuations. Add small but if business performance continues, one can keep adding more. ( #pyramiding )

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8. Deletion is a process of selection. You should have a mind to delete. You should develop that mindset.

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9. For tracking a company, one should make a commitment with actual money so that one can track the company, otherwise It won’t come on the radar. (Eg. 1% of portfolio)

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10. Most of our returns came from P/E Rerating, but earnings growth is also important which will make P/E Rerate.

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11. How to avoid value traps in low P/E stocks?- The most important aspect is to able to judge the management over a period of time. So normally take small position in a company and track them overtime and as you feel that things are going well, you keep increasing the holding.

12. Relative valuation system. When we sell, we don’t mind if the price of the sold share also goes up, provided our new investment goes up much higher. People have problem in selling, as they think it will still go up, whereas we should see which stock has potential to go up.

13. Investing in cyclical stocks, asset value doesn’t matter in the stock market. They become a value trap. Market values stocks on earnings. You should be able to see the reversal of business cycle - when the earrings will come back. You can invest only on that basis.

14. While you want to make the short bet for longer duration of time, the available tool is of shorter duration and it creates a problem. So don’t short the market.

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15. When I feel the valuation is full, I sell and switch. This is where you make more money rather than just holding the stocks.

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16. Rather to spend time reading a lot (investment books), spend more time on understanding the business well. All my learnings have been through deep observations.

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17. My Philosophy is the in investment world, you should have clarity of mind. And for clarity of mind you should lead a disciplined life.

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18. In stock market you should have an open mind and an ability to change it, for that one should have humility. You should also be active. One should have a critical thinking ability and a questioning mind.

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19. Remain within your circle of competence. Don’t venture into sectors where you don’t have competence.

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20. Lot of Intelligent people get married to a stock. So they reduce their gains and don’t grow fast as they could. One needs to be quick in changing mind and being aware of new developments. Many investors try to do everything - they chase whatever is in fancy.

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