Thread by @InvestmentBook1

What you should avoid in Investing

👇👇👇

→Fragility
→Status duo
→Cyclicality
→Complexity
→Win-lose situation
→Over quantification
→Misaligned incentives
→The high correlation in positions

→Underestimation of expense
→Failure to think probabilistically
→A conviction based on a narrow outcome
→This time is different: a new new thing
→Closet indexing: Curated museum v/s warehouse
→Serial acquisitions/ dilutions and low tax

→Failure to distinguish between good businesses and good investments, the role of embedded expectations

→Avoidance of decision fatigue by the concentration of positions

→ Heavy involvement of government in regulation and ecosystem

→Promoter with many related party transactions and dubious sources of equity funding

→Chasing scale at the expense of returns

→Silos and blind spots at boundaries of asset classes

→Market share loser or laggards

→Group thinking/herd mentality

→Cyclical corporate governance
→Suspect accounting quality
→Outsourcing of due diligence
→Fully invested all the time
→Pigs at trough valuation
→Leveraging B/S in upcycle
→Conglomerate mindset
→High role of change
→Timing the market
→Toxic Culture
→Leverage

Sources: MOI Global Interview of @Kuntalhshah

@dmuthuk
@Vivek_Investor
@datta_arvind
@VJ_Rabindranath
@Gautam__Baid