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Vivek Mashrani, CFA

16 May, 12 tweets, 3 min read

🚀🚀

What do great companies do special that they keep compounding for long time?

How can we learn from these businesses and BE BEST Version and create personal monopoly for SUCCESS?

I have taken 12 such POWERFUL PRINCIPLES which we can apply..

(1/n)

vivekmashrani.com/how-to-be-best…

#1 - Vision

Great businesses have one common ingredient, they have great vision for itself..

In Life, we need to set vision for ourselves..

Have goals...affirmations

(2/n)

#2 FOCUS

Most of these great businesses are known for ONE THING

Same way we need to bring super focus in our life

Have discussed many such ways in the podcast above..

What next? Is this sufficient?

(3/n)

#3 ACQUIRE SKILLS

As each new company will bring resources and know how to make product,

Same way we need to acquire specific knowledge and keep investing to go deeper....

But it is not sufficient...application is the key..

(4/n)

#4 BUILD

When businesses actually apply all great practices, it can go to next level

Same is with us...we need to build great processes, form good habits...

And be consistent...

But what about competition? How to build moats?

(5/n)

#5 COMPETITIVE ADVANTAGES

Just like great businesses create competitive advantages like brand, low cost advantage, economies of scale..

We can also be more productive, create personal brand, build networks with great people...

That's our edge...

But how to do that?

(6/n)

#6 CONNECT AND DISTRIBUTE

You can connect through internet...

Write books, blog, create videos, podcasts...

Network with people online...build communities...

This will create network effects of exponential results..

(7/n)

#7 LEVERAGE

Great businesses use different types of leverage - employees, machinery, capital etc.

You can leverage yourself by maximising your output per unit of time..

Delegate
Automate
Stay away from distractions

What next? Is it enough?

(8/n)

#8 LONGEVITY

As it is important for businesses to think long term and survive as well as flourish for long term..

Personally,

Be in the long term game
Choose delayed gratification
Associate with people in long term journey

(9/n)

#9 SALES

All great companies are not only good in their products or services, but also in marketing..

Learn how to sell and you will be unstoppable
Sales is service if you give right solution

And finally...

(10/n)

#10 CAPITAL ALLOCATION

Capital allocation is key to compounding and great businesses to flourish...

Same way in life...allocate time well..

Re-invest in learning and growing...
Gift yourself on wins...

Want to continue journey and read more?

(11/n)

Read further and learn more from these references...

Good to Great: amzn.to/3tRppxQ
Atomic Habits: amzn.to/3bwwzkJ
Joys of Compounding: amzn.to/3yfiIJu
The ONE THING: amzn.to/3yh0Spq

(n/n)

Make sure you listen this:
vivekmashrani.com/how-to-be-best…

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More from @MashraniVivek

Vivek Mashrani, CFA

@MashraniVivek

29 Apr

💡

I have a confession to make to all of you..

When I started, I ventured into Intraday and F&O.

In Oct 2008, I even blew off my capital..

Later, I tried various strategies in investing and again lost 60-70% of my capital..

But that was the best thing that happened...

(1/n)

I have made so many mistakes in my journey...but...

Thankfully, it was relatively low capital at that time.

After being in the industry for more than 13 years, making many mistakes and continuously improving by learning from others

and..

(2/n)

By doing MBA in capital markets & being CFA Charter-holder, now I realise that...

I have at least learnt what not to do.

As Charlie Munger says "Invert, Always Invert". If you want to be successful, you need to know how people fail and never do that.

Here is compilation

(3/n)

Read 14 tweets

Vivek Mashrani, CFA

@MashraniVivek

16 Apr

💡

Investors just talk about high PE stocks being expensive..

But here are 10 SECRETES THAT NOBODY WILL TELL YOU....

On HOW EVEN LOW PE Stocks can also be EXPENSIVE..

Detailed thread you don't want to miss..

Let's first understand what is PE??

(1/n)

💡

P/E is just a multiple...a simple ratio...where numerator is price and denominator is earnings

It could be price per share / EPS or

Market cap / net income

Why it is important...? It's good and easy way to understand how much price we pay for each rupee of earning

(2/n)

Now let's come to SECRET NO. 1

When people look at PE....they generally focus on numerator and forget mostly about denominator...that's THE PROBLEM

So, company have historical good earnings can have low price if future growth is missing...and people think it is CHEAP

(3/n)

Read 14 tweets

Vivek Mashrani, CFA

@MashraniVivek

20 Jan

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..

Read 17 tweets

Vivek Mashrani, CFA

@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

@Amit_Gulecha

2. Gasoline...scary ride..

Who said being a good trader is easy?

@Amit_Gulecha @asitbaran

(2/n)

@suru27

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

Vivek Mashrani, CFA

@MashraniVivek

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 14 tweets

Vivek Mashrani, CFA

@MashraniVivek

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

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