@CFASocietyIndia had a very interesting session at Chennai on Sep 2, 2022 on "Art of Investing" by @safalniveshak with @arun_kumar_r interacting with him with a great set of questions.
(1/n)
(1/n)
He started sharing a slide on how a portfolio of stocks (mostly consumer) picked by his teenage daughter o/p broader markets.
For a moment, I thought I should do a wapsi of my CFA charter and the other degrees!
(2/n)
For a moment, I thought I should do a wapsi of my CFA charter and the other degrees!
(2/n)
Even as I was contemplating, he mentioned about Beginners luck and introduced Dunning-Kruger effect that comforted me a bit
(3/n)
(3/n)
He went on to explain the #Feynman technique and how he worked on it to explain various ideas to his daughter when she was in middle & high school
(My biggest take away was this - as I struggle to explain some stuff)
(4/n)
(My biggest take away was this - as I struggle to explain some stuff)
(4/n)
He used a variant of this chart (Fake Value Investors disappear) to explain why value investing works in the long run
My take away - markets will remain inefficient in pockets with participants that have misunderstood the idea! [Be it value or growth or cyclical investing]
(5/n)
My take away - markets will remain inefficient in pockets with participants that have misunderstood the idea! [Be it value or growth or cyclical investing]
(5/n)
The core of his talk was on 3 things
(a) Patience
(b) Humility &
(c) Rationality
(6/n)
(a) Patience
(b) Humility &
(c) Rationality
(6/n)
Patience is not just waiting, but what you do and how you act when you wait.
Having the right process helps you to wait out during periods of -ve or zero returns to hold on to convictions
A good process leads to good outcome in long run!
(7/n)
Having the right process helps you to wait out during periods of -ve or zero returns to hold on to convictions
A good process leads to good outcome in long run!
(7/n)
Humility is knowing what you do not know.
The more you know, you realise the more you do not know.
A great explanation on how an expanding circle of competence leads to an expanding "shoreline" of ignorance.
(8/n)
The more you know, you realise the more you do not know.
A great explanation on how an expanding circle of competence leads to an expanding "shoreline" of ignorance.
(8/n)
Made a very interesting point on reading - You read not to know more, but to know that you do not know a lot [not his exact statement, but what I made of his point]!
This was an interesting take on reading for me. I practice "tsundoku" this resonated with me!
(9/n)
This was an interesting take on reading for me. I practice "tsundoku" this resonated with me!
(9/n)
The 3rd point on Rationality - the business survival periods are getting shorter. So watch out.
Having a moat increases the period a business has to compound and create wealth
(11/n)
Having a moat increases the period a business has to compound and create wealth
(11/n)
Then he dwelled on having a process to understand businesses, valuation (How a good business at high valuation is not buy, but watch) etc.
Finally that I have some ability to do all these over my teen daughter made me realise that my training (and CFA) is helpful!
(12/n)
Finally that I have some ability to do all these over my teen daughter made me realise that my training (and CFA) is helpful!
(12/n)
Vishal's process below
(13/n)
(13/n)
Follow @safalniveshak for more gems.
And @arun_kumar_r
Arun's magnum opus here
eightytwentyinvestor.com/2018/01/26/sea…
(14/n - end)
And @arun_kumar_r
Arun's magnum opus here
eightytwentyinvestor.com/2018/01/26/sea…
(14/n - end)
Vishal's illustrations here
safalniveshak.com/wall/
Vishal's articles here
vishalkhandelwal.com/articles/
safalniveshak.com/wall/
Vishal's articles here
vishalkhandelwal.com/articles/
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