My takeways from: @LarissaFernand's talk with
@MadhusudanKela in
@in_morningstar's investor conference
A quick thread š
@MadhusudanKela in
@in_morningstar's investor conference
A quick thread š
https://twitter.com/LarissaFernand/status/1460578404047020037
1. Have the right expectations:
Don't expect future returns based on those of past 18months
Be realistic to avoid disappointments.
Don't expect future returns based on those of past 18months
Be realistic to avoid disappointments.
2. Pay attention to value
Markets ultimately value profits, cash flow, margin of safety, mangement quality.
Just because something is in fashion doesn't mean it will forever be!
Markets ultimately value profits, cash flow, margin of safety, mangement quality.
Just because something is in fashion doesn't mean it will forever be!
3. Be in the game for long term
Avoid FOMO & investing based on tips.
Have a mindset to be consistent & get wealthy in 2 decades.
Running behind high return is sure-shot disaster.
Avoid FOMO & investing based on tips.
Have a mindset to be consistent & get wealthy in 2 decades.
Running behind high return is sure-shot disaster.
4. Look deeper
Check if the stock price is supported by business fundamentals.
Investing in poor fundamentals at frothy valuations won't help your portfolio!
Check if the stock price is supported by business fundamentals.
Investing in poor fundamentals at frothy valuations won't help your portfolio!
5. It's futile to predict
Nobody can predict the end of bull run
Neither can anyone predict the next crash
However, corrections are guaranteed & they are an inherent nature of the market.
Nobody can predict the end of bull run
Neither can anyone predict the next crash
However, corrections are guaranteed & they are an inherent nature of the market.
6. Embrace uncertainty
Risk comes from the uncertainty which again is another inherent of nature of market.
Asset allocation can take care of the risk.
Understand the downside before expecting the upside in any investment.
Risk comes from the uncertainty which again is another inherent of nature of market.
Asset allocation can take care of the risk.
Understand the downside before expecting the upside in any investment.
7. Aim to make wealth
Wealth cannot be made over shorter time frame.
A bull run will not make you wealthy immediately. But staying invested for years would certainly will.
Don't let the bull run returns trap you into a false sense of ease.
Wealth cannot be made over shorter time frame.
A bull run will not make you wealthy immediately. But staying invested for years would certainly will.
Don't let the bull run returns trap you into a false sense of ease.
8. Should you book profits?
Only if your asset allocation is being too overweight on equity.
Selling only due to double digit returns is wrong. It unnecessarily interrupts long term compounding!
Only if your asset allocation is being too overweight on equity.
Selling only due to double digit returns is wrong. It unnecessarily interrupts long term compounding!
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